Romania Partners with Rheinmetall to Bolster European Ammunition Production

Romania and Rheinmetall have signed an agreement to build a munitions ignition powder factory for 535 million euros. The move aims to enhance arms production amid heightened security concerns following Russia's invasion of Ukraine.

Romania has entered into a significant agreement with Rheinmetall, a leading German technology and defense firm, to construct a munitions ignition powder factory. Valued at 535 million euros, the deal is part of European efforts to expand arms production in response to security threats posed by the ongoing conflict in Ukraine.

The Romanian industry ministry announced that the factory will serve both domestic defense needs and supply the broader region. Construction is slated to begin in 2026, with a completion timeline of three years. Once operational, the plant will provide employment for 700 individuals.

Meanwhile, Rheinmetall has also launched an ammunition plant in northern Germany, which, according to CEO Armin Papperger, will be the largest in Europe when it reaches full capacity.

(With inputs from agencies.)