German defense contractor Rheinmetall announced on Tuesday that it has established a joint venture with the state-owned Ukrainian Defense Industry, with an initial focus on military vehicle maintenance services in Ukraine.
Named Rheinmetall Ukrainian Defense Industry, the joint venture will later cooperate in developing and manufacturing some Rheinmetall products, the Duesseldorf-based company said. Rheinmetall holds a 51 percent share in the business, which started operations on Oct. 18.
According to Rheinmetall, the joint venture will expand Ukraine’s defense technology capacities, generate added local value and streamline German military equipment deliveries. It is also envisioned to create joint defense industry expertise in Ukraine, the company said.
The development is the latest of Rheinmetall’s projects in Ukraine, which includes a $213 million armored vehicle manufacturing plant that the firm is partnered to operate with Ukroboronprom.
Earlier, Rheinmetall announced that it is supplying Ukraine with automated reconnaissance systems, infantry fighting vehicles ammunition and field hospitals.