Rheinmetall in Eastern Europe. Where the company plans to expand its production and how much it will cost them

German defense contractor Rheinmetall is expanding its presence in Eastern Europe by opening new production facilities for ammunition, armored vehicles, and components for air defense systems.

The company announced this in response to a request from AIN.

Romania

In Romania, Rheinmetall owns 72.5% of the shares in Rheinmetall Automecanica SRL (RAM) in Mediaș. The plant specializes in the manufacture of military trucks, armored personnel carriers, and air defense systems, as well as the repair of equipment for the Romanian armed forces.

RAM has also begun to expand its service capabilities by establishing a service center in Satu Mare. As part of its strategic growth, this activity will be further expanded through a competence center in Mediaș.

RAM is implementing a two-stage development strategy: first, the company is investing in the fulfillment of defense orders, and later in the production of tactical vehicles, a welding and maintenance competence center.

In addition, Romania plans to build a factory for the production of gunpowder for artillery ammunition, which will provide capacity for tens of thousands of shells.

Bulgaria

In Bulgaria, Rheinmetall plans to build two new factories — one for 155 mm artillery shells and the other for gunpowder.

The capacity of the first plant will reach six figures per year, and the company’s total investment in Bulgaria will amount to several hundred million euros.

Both plants are expected to be operational within two years of construction. The gunpowder factory will be able to supply both Rheinmetall’s own needs and the local defense industry.

Lithuania

In November 2024, Rheinmetall and the Lithuanian government signed an agreement to build a modern factory for the production of 155 mm artillery shells in the town of Baisogala.

A production complex with lines for manufacturing shells and charge modules is being built on an area of 340 hectares.

Production is scheduled to start in mid-2026, with a capacity of tens of thousands of shells per year. Direct investment in the project amounts to €180 million, which will create about 150 jobs and involve local businesses in the supply chain.

“This project is the result of a shared understanding of the importance of short supply chains and partnership between Lithuania and Germany,” said Lithuanian Prime Minister Ingrida Šimonytė.

Rheinmetall CEO Armin Papperger emphasized that the long-term partnership with Lithuania “confirms the company’s role as one of the key pillars of international security.”

Latvia

In October 2025, Rheinmetall signed a memorandum with the Latvian government to establish a joint venture for the production of 155 mm artillery shells.

The plant will be built in partnership with the Latvian State Defense Corporation (51% Rheinmetall and 49% Latvian side). Construction is scheduled to begin in spring 2026, with launch approximately one year later.

The total investment will amount to €275 million, the plant will create at least 150 jobs and will be able to produce tens of thousands of shells per year.

Ukraine

On August 11, 2025, Rheinmetall CEO Armin Papperger announced that the company had signed its first contract with Ukraine for the production of ammunition, but that the project was not progressing as quickly as desired.

According to him, the delays were not caused by Rheinmetall, but by the high level of bureaucracy in Ukraine.

Pappenger noted that construction of the plant in Ukraine began almost simultaneously with a similar project in Germany, which is already complete, while the Ukrainian one is not yet.

Rheinmetall also continues to supply weapons and ammunition to Ukraine. In August, the company opened Europe’s largest artillery shell production plant in Unterlüß.

The plant’s launch was slightly delayed: testing began in the second quarter of 2025, and full capacity is expected in 2027.

In early September 2025, the company announced new support for Ukraine — the supply of anti-drone systems.

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