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Artillery ammunition showed in a weapons exhibition before the groundbreaking ceremony for a new munitions factory of German defense contractor Rheinmetall in Unterluess, Germany on Feb. 12, 2024. Photo for illustrative purposes. (David Hecker/Getty Images)
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The German arms manufacturer Rheinmetall announced on July 24 that it had received an order from the Ukrainian government to begin the construction of an ammunition factory in Ukraine.

The news came as Kyiv aims to localize weapons production in 2024.

At the Munich Security Conference in February 2024, Strategic Industries Minister Alexander Kamyshin and Rheinmetall CEO Armin Papperger signed a memorandum of intent on the joint venture.

The July 24 announcement marks the official beginning of the project, which is expected to be completed within a few years, Rheinmetall said.

"The intention is to start the ammunition production in Ukraine within 24 months," the statement read.

The initial order "covers the complete technical equipment of the factory through to commissioning."

The name of the Ukrainian company involved in the joint venture was not specified.

"We are putting our words into action, and together with our partner, we will create a Ukrainian competence center for ammunition," Papperger said.

"The order underlines the confidence in Rheinmetall's expertise and manufacturing capacities. We are grateful to be able to support the country in its re-industrialization and in strengthening its defense capability."

The news follows the opening of the first joint venture between Rheinmetall and the Ukrainian state-owned company Ukroboronprom in Ukraine in June.

The facility will enable faster repair of foreign-supplied equipment and their subsequent return to the front line. In the future, the plant will also produce new armored vehicles, according to Kamyshin.

Rheinmetall has previously said it plans to open at least four production plants in Ukraine.

Earlier in July, CNN reported, citing intelligence sources, that U.S. and German intelligence agencies had discovered and disrupted a Russian-linked plot to assassinate Papperger.

A spokesperson for Rheinmetall did not directly comment on the story but said that "the necessary measures are always taken in regular consultation with the security authorities."

UK signs agreement to support Ukraine’s domestic arms industry
The U.K. and Ukraine signed an agreement that provides credit support for the development of Ukraine’s defense industry, Ukraine’s Presidential Office announced on July 19.

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