German arms maker Rheinmetall will establish itself in Ukraine by cooperating with the domestic military industry to repair military vehicles, the first step before manufacturing directly on site, it announced on Friday. A joint venture will emerge between the German group, one of the makers of the Leopard tanks, and the Ukrainian state-owned company Ukroboronprom, a state-owned military conglomerate, Rheinmetall said in a press release.
“In a first joint step with Ukroboronprom, activities in the field of repairing military vehicles (…) should constitute the cornerstone of this cooperation,” the press release specifies.
“Technology transfer”
“In later phases, the cooperation will focus on the joint manufacture of certain Rheinmetall products in Ukraine on the basis of a complete transfer of technology,” adds the group, which foresees for the future that “new military systems can also be jointly developed” in Ukraine and exported abroad. The joint venture should be operational from mid-July.
Rheinmetall is concerned “with meeting the urgent needs [de l’Ukraine] as soon as possible,” Rheinmetall CEO Armin Papperger was quoted as saying in the press release. Armin Papperger had already said he was in talks with the Ukrainian government with a view to setting up a factory in the country.
The German government is one of the main contributors to military aid given by Ukraine’s allies, and in particular supplies weapons and ammunition made by Rheinmetall, such as the Leopard heavy tanks that recently arrived on the battlefield against Russia. The Düsseldorf (west) group posted record profits in 2022 and this year joined the elite of the Frankfurt Stock Exchange, the Dax index comprising the 40 largest German companies.
Source: BFM TV
