Joint venture with state-owned company
Rheinmetall repairs and builds tanks in Ukraine
05/13/2023 4:51 p.m
The German armaments manufacturer Rheinmetall is founding a joint venture with a Ukrainian state-owned company. The cooperation is said to include the maintenance and repair of armored vehicles in Ukraine. The construction of tanks is also being prepared.
The armaments group Rheinmetall becomes the central supplier of local equipment in Ukraine. The company has founded a joint venture with the Ukrainian state-owned company Ukroboronprom, as the DAX group announced. “It is a key concern for us at Rheinmetall to support our Ukrainian partners in the fight for freedom and democracy and to cover their urgent needs as quickly as possible,” explained CEO Armin Papperger. The cooperation includes the maintenance and repair of armored vehicles in Ukraine, while preparations are being made for the construction of tanks, the group said.
Ukroboronprom Director General Yuriy Husjev stated: “Despite numerous Russian missile attacks, Ukroboronprom was able to increase the production of military equipment and armored vehicles. Together with Rheinmetall at our side, we will be able to achieve even more for our country.” According to the information, Rheinmetall will hold a majority of 51 percent in the new company and will also take over the management of the company.
The management comes from Rheinmetall. The cooperation will make Rheinmetall one of the most important partners of the Ukrainian armaments industry, it said. And cooperation on tanks is only the first step on the way to full cooperation. In the coming days, the contracts for two more joint ventures are to be signed – for ammunition and air defense.
Even in the event of peace in Ukraine, Rheinmetall anticipates high customer demand for the group’s armaments. He expects brisk demand over the next ten years, said Papperger at the beginning of the month at the virtual general meeting of the Düsseldorf group.
He wished for peace in Ukraine, he emphasized. However, the demand in Europe and especially in the NATO countries for armaments such as combat vehicles or ammunition will remain very high. The camps are empty, and Ukraine will also have to replenish its arsenals in the future.