Romania and the German defense company Rheinmetall have reached an agreement to build a propellant factory for ammunition, which could become the largest in the world, the Romanian Ministry of Economy reported.
Plans for Rheinmetall to build a propellant plant in Romania were first announced in March 2024. The project was developed in cooperation with the European Commission.
On August 27, the agreement was signed in Germany. The document was signed by Romania’s Minister of Economy Radu Miruța and Rheinmetall CEO Armin Papperger, in the presence of NATO Secretary General Mark Rutte, German Defense Minister Boris Pistorius, German Vice Chancellor Lars Klingbeil, and Bulgarian President Rumen Radev.
“Today’s ceremony followed several intense weeks of discussions and negotiations, serious work, respect for partners, and a firm determination to protect Romania’s interests,” the statement said. According to the ministry, the plant in the city of Victoria will produce propellant for the defense industry, both for Romania’s domestic needs and for the region.
Construction will begin in 2026 and take three years.
The project, which will create 700 new jobs, will involve an investment of €535 million.
- On August 26, it was announced that Rheinmetall will build two plants in Bulgaria: one to produce propellant and charges, and another for 155-mm NATO-standard shells.
- On August 27, Rheinmetall officially opened Europe’s largest ammunition plant in Unterlüß, which will produce up to 350,000 artillery shells per year.
