German defence giant to produce artillery ammunition in Ukraine in joint venture

German defence company Rheinmetall plans to open a new factory in Ukraine to produce artillery ammunition.

The firm signed a memorandum of understanding with an unnamed Ukrainian company at the Munich Defence Conference.

Rheinmetall, the largest ammunition producer in Europe, intends to jointly run the factory, projecting an annual production capacity of a six-digit figure of 155mm calibre shells, the company said.

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The Ukrainian Competence Centre for Ammunition will also produce propelling charges to go with the bullets which are integral components of firing the bullet.

"Demand for ammunition in many countries is enormous – first and foremost in Ukraine, of course. Our intention of establishing another joint venture underscores our support for Ukraine " said Rheinmetall chairman Armin Papperger.

Rheinmetall will own 51% of the new company, with the remaining 49% share held by the Ukrainian partner.

"This joint venture will make a vital contribution to the country's ability to defend itself – and thus to the security of all Europe," Mr Papperger said.

"We want to be an effective partner of Ukraine, to help rebuild the country's once-powerful defence industry and to assure Ukrainian autonomy in ammunition production.

"Already today we are Kyiv's most important defence industry partner. We are currently processing several billion euros' worth of projects on behalf of Ukraine, with more almost daily."

The German company has been operating in Ukraine alongside state-owned Ukraine Defence Industry JSC (formerly Ukroboronprom) since October 2023, maintaining and repairing combat vehicles.

The company also plans to build armoured vehicles in Ukraine.