German Rheinmetall opens plant in Romania to help Ukraine
In the Romanian city of Medias, the German concern Rheinmetall has opened a new defence plant that will become an important element not only for Romanian capacities but also for meeting Ukraine's needs for military equipment.
Here's What We Know
On 1 February this year, Rheinmetall acquired a 72.5% controlling stake in the Romanian automotive manufacturer Automecanica SRL. Since then, the plant has been operating in Romania under the name Rheinmetall Automecanica SRL. Previously, Automecanica Medias produced special vehicles, truck modifications and trailers for the civilian and military markets.
The forecasts for the plant's sales and development potential are very optimistic. Annual sales are expected to reach around EUR 300 million. This growth creates new opportunities not only for the company but also for the entire region.
However, it is not just the economic performance that makes the plant important. Its opening will help strengthen NATO's defence infrastructure and increase the efficiency of supply chains on the eastern flank of the alliance. This step is important in the context of the current security situation and the need for support from partners.
In addition, the plant will not only produce equipment for the domestic market, but will also develop and manufacture products to meet the needs of the Ukrainian army.
"The plant in Mediash is designed to play a key role in maintaining the operational readiness of Western-made combat vehicles in Ukraine," the concern said.
Source: Rheinmetall