BERLIN (Reuters) – German defense company Rheinmetall plans to open an ammunition plant in Ukraine as part of a joint venture with a Ukrainian partner, the company said on Saturday.
Rheinmetall, one of the world’s largest makers of artillery and tank shells, began ramping up production following Russia’s 2022 invasion of Ukraine, which faces severe ammunition shortages and whose troops have been forced to flee the devastated eastern town of Avdiivka in recent days.
The German company signed a memorandum of understanding at the Munich Safety Conference on Saturday to build and jointly operate a new plant with a Ukrainian partner, which it did not name.
The plant in Ukraine will produce six-figure quantities of 155mm bullets per year, Rheinmetall said, but did not specify when production would begin or where the plant would be located.
Rheinmetall will own 51% of the new company, while the remaining 49% of the shares will be owned by the Ukrainian partner.
A German company is already involved in setting up a joint venture in Ukraine to service and repair Western weapons sent to help Kyiv fend off Russia. It is also planned to produce armored vehicles in Ukraine.