Rheinmetall to Build Gunpowder Factory in Romania

Rheinmetall will build a gunpowder factory in Romania in a joint effort between the arms giant and the European Commission.

The project was announced by Romania’s Prime Minister Marcel Ciolacu in an interview with Digi24.

The 300-hectare factory will be built near the town of Victoria in Brașov County and will also manufacture NATO-standard artillery ammunition.

The development is estimated to be worth 400 million euros ($434 million), with the European Commission financing 47 million euros ($51 million) of the project.

Ciolacu said that Rheinmetall representatives have already arrived in the country to begin the construction.

“This will be the most modern gunpowder plant in Romania. Several contracts are already in the implementation phase,” he added.

Promoting Growth in Europe

Rheinmetall’s recent push for wider support in the defense industry partly stems from the need to rearm reserves depleted amid the ongoing Russo-Ukrainian war.

Aside from establishing new facilities in Germany and Hungary, it also announced plans to set up at least four factories in Ukraine, estimating a yearly sale of up to three billion euros in military capabilities.

Some of its more recent deals include a 300-million-euro ($326 million) agreement to supply an undisclosed NATO member with rocket launcher ammunition and Austria’s procurement of 36 Skyranger mobile air defense systems.

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