The CEO of the German defense consortium Rheinmetall AG, Armin Papperger, reported that the opening of the company’s new factory in Ukraine has been postponed due to a change in location initiated by the Ukrainian side. Once construction is completed, the facility will be able to commence operations within a year.
This is reported by Finway
Reasons for the Delay in Launching the Factory
According to Papperger, the construction process of the ammunition manufacturing plant, which was supposed to be operational by now, is delayed specifically because of the selection of a new location. Ukrainian partners decided to change the planned site of the facility, which affected the project’s timeline.
“Unfortunately, the construction of the ammunition manufacturing plant in Ukraine is delayed. The factory was supposed to be operational by now. However, Ukraine wanted to change the location,” Papperger noted.
Plans for Manufacturing Combat Vehicles in Ukraine
In addition to ammunition production, Rheinmetall plans to launch the manufacturing of combat vehicles such as Fuchs, Lynx, and Panther in Ukraine. Papperger emphasized that the contract for this production is still awaiting signature. Significant funding is required to initiate such a large-scale project. At the same time, establishing a production line will only be feasible if at least 200–300 units of equipment are manufactured.
It is worth noting that only in September did Ukraine allocate land for the new Rheinmetall factory. Overall, the company intends to open three facilities on Ukrainian territory: for the production and repair of air defense systems, repair and assembly of armored vehicles, and the production of ammunition.