Published by Global Banking & Finance Review®
Posted on August 27, 2025
1 min readLast updated: January 22, 2026
Add as preferred source on GoogleRheinmetall plans a €535M ammunition factory in Romania, starting in 2026. It will enhance European defense production and employ 700 people.
BUCHAREST (Reuters) -Romania has signed a framework agreement with German technology and defence specialist Rheinmetall to build a munitions ignition powder factory for 535 million euros ($626.3 million), the country's industry ministry said on Wednesday.
European states have been boosting arms and munition production capacity since Russia's invasion of Ukraine in 2022.
Romania and Rheinmetall, the largest European arms producer, will produce the powder necessary for domestic defence needs and for the entire region, the ministry statement said.
Construction is due to start in 2026 and is expected to take three years. The plant will employ 700 people when it becomes operational.
Rheinmetall opened an ammunition plant in northern Germany on Wednesday. CEO Armin Papperger said it will be the largest in Europe at full capacity.
($1 = 0.8542 euros)
(Reporting by Luiza IlieWriting by Anna Wlodarczak-SemczukEditing by David Goodman)
Munitions ignition powder is a type of explosive material used to initiate the combustion of propellant in ammunition, ensuring the effective functioning of firearms and artillery.
Rheinmetall is a leading technology and defense company in Europe, specializing in the production of military equipment, including ammunition and vehicles.
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