Rheinmetall launches Ukrainian production amid Russian threats
The German arms manufacturer Rheinmetall has commenced production in Ukraine. The factory specialises in the production and maintenance of combat vehicles, and by the end of the year, it plans to start a production line for Lynx infantry fighting vehicles. Dmitry Medvedev has threatened repercussions.
The first of the German Rheinmetall Group's four planned armament plants is now operational in Ukraine. According to CEO Armin Papperger in an interview with Ukrainian television TSN, the plant specialises in the production and maintenance of combat vehicles.
Plans to start a production line for modern Lynx infantry fighting vehicles by the end of the year, with the first batch expected to include 10 units, are underway. Simultaneously, the construction of a second plant is already underway.
Strategic investments in the Ukrainian defence industry
Launching the first factory marks a groundbreaking moment for German-Ukrainian cooperation in the defence sector. Over the past few months, the German government and Rheinmetall have faced criticism for delays in implementing the promised investments in Ukraine. Currently, the operational plant is servicing infantry fighting vehicles and tanks, which constitutes a crucial element of technical support for the Ukrainian armed forces.
The project's ownership structure sees Rheinmetall holding a majority 51% stake in collaboration with the Ukrainian defence industry. CEO Papperger points to the Ukrainian army's vast need for modern combat equipment. According to his estimates, actual needs amount to about 3,000 Lynx infantry fighting vehicles, but fulfilling orders on such a scale is currently impossible due to budget constraints.
Last year, the company also unveiled ambitious plans regarding tank production on Ukrainian territory. The production of 400 Panther tanks was planned, but according to reports from Ukrainian media, the priority for the Ukrainian side currently remains infantry fighting vehicles. As emphasised by Ukraine's Minister of Industrial Transformation Kamyshyn, this type of equipment is now most needed by the armed forces.
Comprehensive programme to expand production capabilities
Rheinmetall's investment plan involves establishing four specialised manufacturing plants. The second factory, already under construction, will focus on producing gunpowder, a strategic component necessary for ammunition production. The third plant will specialise in producing NATO-standard ammunition, while the fourth will manufacture air defence systems.
Rheinmetall's CEO highlights significant successes in supplying military equipment to Ukraine. Recently, the planned delivery of Marder 1A3 infantry fighting vehicles was completed for the third quarter of 2024. The total number of these vehicles delivered has already reached around 200 units. The company consistently refurbishes these vehicles, preparing 10 units per month for the Ukrainian armed forces.
A particularly important aspect of the planned investments is the construction of ammunition manufacturing plants. According to Papperger's declarations, the new factories aim to achieve production capacities, allowing for a two- or even threefold increase in the production of NATO-standard ammunition. The production of hundreds of thousands of artillery shells with a calibre of 155 mm and appropriate propelling charges is planned.
Reactions and threats from Russia
The announcement of the first factory's launch was met with an immediate and aggressive reaction from Russian authorities. Dmitry Medvedev, Deputy Chairman of the Russian Security Council, posted a direct threat on social media to destroy the plant. He attached a video depicting an explosion, suggesting a potential attack on the facility.
This is not the first threat from Russian authorities regarding Rheinmetall's investments in Ukraine. As early as July, when the company announced the signing of a contract for the supply of equipment to a planned ammunition factory worth over €100 million, Russian Foreign Ministry spokesman Andrei Nesterenko issued a statement saying that any such site on Ukrainian territory would constitute a legitimate target for Russian armed forces.
Previous threats were also made in March 2023, when Rheinmetall presented plans to build a tank factory. At that time, former Russian President Dmitry Medvedev threatened to bomb the facilities using cruise missiles. The CEO of Rheinmetall remains resolute against Russian threats, emphasising the need to expedite the implementation of all planned investments due to Ukraine's urgent defence needs.
