The German concern Rheinmetall AG will build an ammunition production plant in Ukraine, the concern has received a corresponding official order from the Ukrainian government in accordance with the agreements announced in February.

"The order for the Duesseldorf-based technology group Rheinmetall covers the complete technical equipment of the factory through to commissioning. The intention is to start the ammunition production in Ukraine within 24 months," the company said.

According to the report, the total cost of the order is within EUR100-333 million (low three-digit million euro range).

"Together with its Ukrainian joint venture partner, Rheinmetall will also be responsible for operating the plant," it reads.

“We are putting our words into action and together with our partner we will create a Ukrainian competence center for ammunition,” said Armin Papperger, CEO of Rheinmetall AG.

"Measures are currently being taken in the Ukraine to prepare the necessary infrastructure. A joint venture between Rheinmetall and a Ukrainian state-owned company in operating the ammunition plant is about to be established. This was announced at a side-discussion at the Munich Security Conference in February 2024," the report says.

"In June 2024, the CEO of Rheinmetall AG, Armin Papperger, and the Ukrainian Minister for Strategic Industries, Oleksandr Kamyshin, signed an agreement to expand the strategic cooperation at the Ukraine Recovery Conference in Berlin. A few days earlier, they opened an armor plant in western Ukraine, which is operated by the joint venture Rheinmetall Ukrainian Defense Industry LLC. The first Lynx Infantry Fighting Vehicle (IFV) from Rheinmetall is to be handed over to the Ukrainian armed forces before the end of this year, and local production is to commence as soon as possible," according to the document.