Handelsblatt: Rheinmetall creates a plant for the repair and production of tanks in Ukraine

5/12/2023, 1:56:47 PM

Highlights: Rheinmetall and Ukroboronprom have signed a contract to build tanks in Ukraine. The contract includes the repair and production of tanks. The deal is expected to be completed by the end of the year. The company is also planning to build a plant to produce artillery ammunition for the Russian army. The project is being funded by the German government. It will cost around €1.5 billion to build the new plant, according to the German company's estimates. The construction of the plant will begin in the next few months, the company says.

The German concern Rheinmetall, together with Ukroboronprom, will create an enterprise in Ukraine for the repair and production of tanks, writes Handelsblatt.

The head of the German concern, Armin Papperger, said that "contracts have been signed."

"Cooperation includes the maintenance and repair of armored vehicles in Ukraine, in parallel, the construction of tanks is being prepared," the newspaper reports.

Allegedly, Rheinmetall will own a 51% stake in the new company and take over.

Earlier, Papperger announced the company's plans to produce up to 600 thousand artillery ammunition per year for further deliveries to Ukraine.

In early May, the German company said that in the first quarter of 2023, sales of the defense concern increased by 7.6%, to €1.4 billion, compared to last year.

Deputy Chairman of the Russian Security Council Dmitry Medvedev said that if the plant is built, Russian forces will mark this event with a "salute from Kalibr and other pyrotechnic devices."