Rheinmetall's new plant in Ukraine: what we know

German defence company Rheinmetall announced the construction of a new plant for the production of artillery shells in Ukraine. This was announced by the Minister of Defence of Ukraine Denys Shmyhal.

Details of the initiative

• Date of the decisionThe land for the plant was allocated on 9 September.
• Location.A secure site in Ukraine has been selected. The exact location is not specified.
• Products.Rheinmetall shells for the needs of the Armed Forces of Ukraine.

Why it is important for Ukraine

1. Strengthening defence capabilities
   In-house production of shells reduces dependence on imports and speeds up the logistics of ammunition supply during the war.
2. Strategic cooperation with the West
   This is a step within Ukraine's broader policy of attracting Western companies to the defence industry. Such cooperation can stimulate technological development.
3. Economic effect
   The new plant will create jobs, infrastructure and develop the local industrial base.

Possible challenges and risks

• Facility security - The plant will be strategically important and may be subject to enemy attacks.
• Investment and financing - Construction, equipment and operating costs are significant. Clear support from international partners is required.
• Raw materials and logistics - Even with a plant in Ukraine, there are still issues related to the provision of the necessary materials, parts, components and their transportation.

Context: where Ukraine stands in industrial defence today

• Since the beginning of the full-scale invasion, Ukraine has been striving to develop its own defence industry: production, repair of weapons, and the use of Western technologies.
• Rheinmetall has previously announced plans or participation in joint projects in Ukraine, including joint ventures.

What's next

• The Government of Ukraine and partners are expected to release details of the construction and production start-up dates.
• It is necessary to determine who will supply raw materials and components and what security guarantees the facility will have.
• The success of this project could become a catalyst for other similar initiatives in the defence industry.