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."