Ukroboronprom, Rheinmetall to Establish JV for Joint Artillery Ammo Production in Ukraine

Ukraine’s state-owned defense company Ukroboronprom has signed a new memorandum of cooperation with German arms manufacturer Rheinmetall, exploring the creation of another joint venture focused on producing artillery ammunition inside Ukraine.

The agreement was signed on May 13 in Madrid and outlines intentions by both parties to work together under future separate agreements to establish ammunition production facilities within Ukrainian territory. The move comes as Ukraine continues to face high battlefield demand for artillery shells in its ongoing war with Russia.

“The full-scale war has proven that the need for artillery shells is huge, and the existing capabilities of enterprises are not enough to fully cover it. Therefore, each new ammunition plant, each new production line are critically important for providing the army. We must use all opportunities to create such capacities,” said Oleh Hulyak, General Director of the Ukrainian Defense Industry Joint-Stock Company.

The newly signed memorandum builds on an existing partnership between Ukroboronprom and Rheinmetall. In October 2023, the two companies announced the formation of a joint venture focused on repairing Western-supplied military vehicles. The first facility under that venture became operational in June 2024, with its main task being the repair of Rheinmetall-developed armored combat vehicles.

According to Ukroboronprom, the launch of the repair workshop significantly shortened the turnaround time needed to restore equipment and return it to service on the frontlines. Plans are also underway to expand the facility’s role to include the production of new military equipment domestically.