A Ukrainian company has signed a memorandum of agreement with German arms manufacturer Rheinmetall to establish a joint venture that will produce and supply ammunition to Ukraine.
Called Ukrainian Competence Center for Ammunition, the new company will manufacture a six-digit number of 155 mm caliber bullets annually in an artillery ammunition plant Rheinmetall will build in the country.
Under the agreement, Rheinmetall will own 51 percent of the new company while the unnamed Ukrainian partner will hold the rest of the shares.
According to a Reuters report, Rheinmetall increased its production of artillery and tank shells after Russia began its invasion of Ukraine in 2022 to address ammunition shortages.
Rheinmetall is currently involved in a joint venture called Rheinmetall Ukrainian Defense Industry with Ukraine’s state-owned enterprise Ukrainian Defense Industry JSC. The newly established company focuses on maintaining and repairing combat vehicles, with plans to produce armored vehicles in the future.
Armin Papperger, chairman of the executive board of Rheinmetall, said forming the joint venture will contribute to Kyiv’s defense capabilities and the security of other European countries.