Germany’s Rheinmetall opens first joint production facility in Ukraine

Rheinmetall, a global defense giant, has opened its first joint facility in Ukraine to repair and produce armored vehicles.

This venture is part of a partnership with Ukraine’s state-owned defense conglomerate, Ukroboronprom, aimed at strengthening the country’s military resilience and self-sufficiency.

The new facility is designed to expedite the repair and production of German-made military vehicles, enhancing Ukraine’s ability to maintain and deploy its armored fleet. The partnership will not only speed up the restoration of combat vehicles but also eventually enable the production of new equipment for Ukraine’s security and defense forces by Ukrainian technicians.

“This collaboration is a crucial step in integrating Ukrainian defense capabilities into the broader European defense framework, contributing to collective security in the European Union,” said Oleksandr Kamyshin, Ukraine’s Minister for Strategic Industries. “The opening of this joint facility with Rheinmetall is a stride towards victory for Ukraine and a significant milestone in building the Arsenal of the Free World.”

The facility, staffed by Ukrainian specialists under the technical supervision of Rheinmetall representatives, is expected to enhance the operational readiness of Ukraine’s armed forces by providing rapid repair and maintenance services directly within Ukraine. “The opening of the first joint service center with Rheinmetall in Ukraine is critical for bolstering our defense capabilities. This will ensure quick repairs and maintenance of German equipment on Ukrainian soil, significantly increasing the effectiveness of our armed forces,” noted Dmytro Klimenkov, Ukraine’s Deputy Minister of Defense.

David Lomdzharia, Chairman of the Supervisory Board of Ukroboronprom, emphasized the importance of this partnership: “Developing a partnership with a leading global defense manufacturer like Rheinmetall reflects the high level of trust Ukroboronprom has earned from its Western counterparts. This trust results from the diligent work in developing our competencies, implementing corporate governance reforms, and building an anti-corruption infrastructure. These factors collectively make our company and its enterprises competitive, transparent, and attractive to foreign partners.”

This project is part of a broader collaboration program with Rheinmetall, creating new opportunities for Ukrainian defense forces. It ensures that after repairs and maintenance, equipment is swiftly returned to operational status. “The fact that this is happening in Ukraine demonstrates the confidence our international partners have in us, our professionalism, and the high potential of our domestic defense industry,” said Herman Smetanin, General Director of Ukroboronprom.

Armin Papperger, CEO of Rheinmetall AG, highlighted the strategic importance of the venture: “It is crucial for us to provide effective and reliable support to Ukraine. When it comes to supplying spare parts, our priority is ensuring maximum availability and rapid replenishment. To achieve this, we utilize existing channels of original manufacturers, process materials ourselves and with partners, and restore original supply chains while integrating local production in Ukraine.”

The German-Ukrainian joint venture “Rheinmetall Ukrainian Defense Industry LLC” (RHEINMETALL UDI) was officially registered on October 18, 2023, in Ukraine.

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