Rheinmetall and the Ukrainian defense industry establish cooperation in Kyiv

Rheinmetall AG and Ukrainian Defense Industry JSC (UDI) have established a joint venture in Kyiv.

The venture, Rheinmetall Ukrainian Defense Industry LLC, focuses on the maintenance of military vehicles as an initial phase of their cooperation, with plans to expand to joint production of selected Rheinmetall products on Ukrainian soil.

The opening of Rheinmetall Ukrainian Defense Industry LLC on October 18, 2023, was announced by the Prime Minister of Ukraine, Denys Shmyhal, during the German-Ukrainian Business Forum in Berlin. Attended by German Chancellor Olaf Scholz, the event underscored the strategic importance of this venture for both nations.

This partnership was launched in May 2023 and gained regulatory approval in Germany, Poland and Ukraine, strengthening its position in the defense industry. Rheinmetall holds a 51% stake in the joint venture, while UDI retains 49%, suggesting a balanced partnership aimed at strengthening Ukraine’s domestic defense industry.

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Focusing initially on service, maintenance and production of military vehicles within Ukrainian territory, the venture aims to strengthen Ukraine’s national security infrastructure. “In Germany, there are no competitive overlaps and no indications of competition-related concerns,” the Federal Cartel Office said in a statement on September 28, 2023.

The first phase of cooperation will include service and maintenance of military vehicles, benefiting from Ukraine’s participation in the German government’s multilateral equipment exchange projects “Ringtausch”. This collaborative effort is expected to lead to the joint production of selected Rheinmetall products on Ukrainian soil, further enhancing the country’s defense capabilities.

Rheinmetall has demonstrated a variety of international support for Ukraine. The German-based company has begun the delivery of 35mm anti-aircraft ammunition to Ukraine’s Gepard anti-aircraft tanks. Furthermore, Rheinmetall supplied Ukraine with a mobile hospitalfulfilling a 9 million euro contract.

In addition, Rheinmetall secured an order for 155mm artillery ammunition for Ukraine and Germany, with deliveries scheduled for 2024. Finally, Rheinmetall’s subsidiary Expal Systems will deliver more than 100,000 155mm rounds to German government, representing Ukraine’s efforts. Rheinmetall’s expanded production capacity.

This joint venture creates opportunities to expand defense technology capabilities within Ukraine, but also aims to promise increased local value addition and rapid access to military equipment from Germany. It is proof of the joint commitment of Rheinmetall and UDI to promote Ukraine’s defense industry and secure the country’s future.

Read the original at Defence247.gr

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