German arms giant Rheinmetall launches factory in Ukraine amidst Russian threats
The German arms manufacturer Rheinmetall has begun production in Ukraine. The factory specializes in producing and maintaining combat vehicles, and by the end of the year, it plans to start a production line for Lynx infantry fighting vehicles. Dmitry Medvedev has threatened repercussions as a result.
12:53 PM EDT, October 29, 2024
The first of four planned armament plants by the German Rheinmetall Group has become operational in Ukraine. According to CEO Armin Papperger in an interview with Ukrainian television station TSN, the plant specializes in producing and maintaining combat vehicles.
Plans to launch a production line for modern Lynx infantry fighting vehicles before the end of this year, with the first batch expected to include 10 units, are underway. Simultaneously, construction of a second plant is already underway.
Strategic investments in the Ukrainian defense industry
Launching the first factory marks a pivotal moment for German-Ukrainian cooperation in the defense sector. Over the past few months, the German government and Rheinmetall have faced criticism for delays in implementing the promised investments in Ukraine. The operational plant is currently servicing infantry fighting vehicles and tanks, which are crucial for providing technical support to the Ukrainian armed forces.
The project's ownership structure grants Rheinmetall a majority 51-percent stake in collaboration with the Ukrainian defense industry. CEO Papperger highlights the Ukrainian army's large need for modern combat equipment. He estimates there is a real need for about 3,000 Lynx infantry fighting vehicles, but fulfilling orders on such a scale is currently impossible due to budgetary constraints.
Last year, the company unveiled ambitious plans for tank production on Ukrainian soil. The production of 400 Panther tanks was planned, but according to reports from Ukrainian media, the priority for the Ukrainian side currently remains infantry fighting vehicles. According to Ukraine's Minister of Industrial Transformation Kamyshyn, this type of equipment is now the most needed by the armed forces.
Comprehensive program to expand production capabilities
Rheinmetall's investment plan involves establishing four specialized manufacturing plants. The second factory, which is already under construction, will focus on producing gunpowder, a strategic component necessary for ammunition production. The third plant will specialize in producing NATO-standard ammunition, while the fourth will manufacture air defense systems.
Rheinmetall's CEO highlights significant successes in supplying military equipment to Ukraine. Recently, the planned delivery of Marder 1A3 infantry fighting vehicles was completed for the third quarter of 2024. The total number of these types of vehicles delivered has already reached around 200 units. The company maintains a steady rate of refurbishing these vehicles, preparing 10 monthly units for the Ukrainian armed forces.
A particularly important aspect of the planned investments is the construction of ammunition manufacturing plants. According to Papperger's statements, the new factories aim to achieve production capacities, allowing for a two- or even threefold increase in the production of NATO-standard ammunition. The production of hundreds of thousands of artillery shells with a caliber of 155 mm, along with appropriate propelling charges, is planned.
Reactions and threats from Russia
The first factory's launch announcement was met with an immediate and aggressive response from Russian authorities. Dmitry Medvedev, Deputy Chairman of the Russian Security Council, posted a direct threat on social media to destroy the plant. He attached a video depicting an explosion, hinting at a possible attack on the facility.
This is not the first threat from Russian authorities regarding Rheinmetall's investments in Ukraine. As early as July, when the company announced the signing of a contract for the supply of equipment to a planned ammunition factory worth over 100 million euros, Russian Foreign Ministry spokesman Andrei Nesterenko stated that any such site on Ukrainian territory would be a legitimate target for Russian armed forces.
Previous threats were also made in March 2023, when Rheinmetall presented plans to build a tank factory. At that time, former Russian President Dmitry Medvedev threatened to bomb the facilities using cruise missiles. Despite these threats, Rheinmetall's CEO remains resolute, emphasizing the need to expedite all planned investments due to Ukraine's urgent defense needs.
