The German arms manufacturer, Rheinmetallannounced that it will establish a joint venture (JV) with an unnamed Ukrainian partner company to produce 155 millimeter (mm) ammunition in Ukraine.
A memorandum of understanding was signed in the presence of the Ukrainian Minister of Strategic Industries, Alexander Knamyshin, during the Munich Security Conference.
Rheinmetall expects its new “Ukrainian Ammunition Competence Center” to produce six-figure numbers of 155mm rounds per year in the future, including the corresponding propellant charges.
To achieve this, the partners plan to jointly build and operate a new production facility. Rheinmetall will have a 51% stake in the new company, with its Ukrainian partner holding the remaining 49%.
Avdiivka falls
This announcement came at the same time as Russian invasion forces gained the upper hand in Avdiivka, from which the Ukrainian Armed Forces have since withdrawn.
“Delays in Western security aid, specifically artillery ammunition and critical air defense systems, have prevented Ukrainian troops from defending against Russian advances in Avdiivka», noted the security research group, the Institute for the Study of War.
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This loss includes a new avenue for keeping munitions flowing to Ukrainian forces: domestic industrial production.
However, this is not a new idea. To compensate for the loss of hardware, Ukraine’s domestic defense industry has established cooperation agreements with Western defense organizations throughout 2023, particularly in the summer.
Actually, a defense industries alliance was established at the end of September 2023. It includes 38 member companies representing 19 countries. These are agreements on joint production, exchange of technologies, supply of components, production of propellant powder and manufacture of ammunition.
Likewise, Rheinmetall had also previously formed a JV with Ukroboronprom – Ukraine’s state-owned defense industry company – in October 2023. This first JV set the stage for efforts to maintain and repair combat vehicles in Ukraine and later armored vehicles.
A new avenue: Ukrainian industrial production
“The demand for ammunition in many countries is huge – first and foremost in Ukraine, of course,” suggested Armin Papperger, chairman of the executive board of Rheinmetall.
“Our intention to establish another joint venture underlines our support for Ukraine. This joint venture will make a vital contribution to the country’s ability to defend itself – and therefore to the security of the whole of Europe.”
Likewise, this latest JV, aimed at boosting Ukraine’s domestic munitions production, comes on the heels of Rheinmetall’s announcement that it will shoulder the costs of a new munitions factory in Underluss, Lower Saxony.
The company made the bold claim that this facility will help ensure that Germany is fully self-sufficient in its ammunition production:
“The previous reliance on export licenses issued by other countries will be eliminated, giving Germany complete sovereignty in this area related to national security.”
In the same way, “[w]I want to be an effective partner of Ukraine, help rebuild the country’s once strong defense industry and ensure Ukraine’s autonomy in ammunition production,” Papperger added.
“Already today, we are the most important partner of the defense industry of Kyiv. We are currently processing multi-billion euro projects on behalf of Ukraine, with more coming almost daily.”
Read the original at Defence247.gr
