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An employee works on the Lynx infantry fighting vehicle in Rheinmetall's production facility on June 6, 2023. (Philipp Schulze/picture alliance via Getty Images)
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German arms manufacturer Rheinmetall plans to set up at least four factories in Ukraine to produce artillery shells, military vehicles, gunpowder, and anti-aircraft weapons, the AFP reported on March 14.

This could present a boost for Ukrainian defense production amid ammunition shortages and dwindling supplies from the U.S.

"Ukraine is now an important partner for us, where we see a potential of between 2 and 3 billion euros ($2.18-$3.27 billion) per year," Rheinmetall CEO Armin Papperger said during a presentation of the company's 2023 results, the AFP wrote.

Previously, the company signed a contract with the Ukrainian Defense Industry (Ukroboronprom) in October 2023 to repair and produce armored vehicles directly in Ukraine in a joint plant.

During the Munich Security Conference in February, Papperger signed a memorandum of intent with Ukraine's Strategic Industries Minister Oleksandr Kamyshin to produce artillery shells in another joint plant based in Ukraine.

The Invisible War: Inside the electronic warfare arms race that could shape course of war in Ukraine
When Ukraine received Excalibur artillery shells in March 2022 from the U.S. shortly after the start of Russia’s full-scale invasion, it was immediately the military’s weapon of choice. Thanks to their GPS navigation system, these expensive munitions had a high-precision flight trajectory and could…
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