NATO member Romania has formally signed an agreement with the German defence company Rheinmetall to establish a gunpowder manufacturing facility in central Romania. This initiative is part of Europe’s broader efforts to enhance its defence capabilities in light of increasing tensions with Russia.
Following the agreement, Prime Minister Ilie Bolojan emphasised that this joint venture between the Romanian government and Rheinmetall, Europe’s largest arms manufacturer, signifies Romania’s growing role as a significant contributor to the defence industry in Southeast Europe.
Furthermore, on 28 October, Rheinmetall entered into a similar partnership with the Bulgarian company VMZ (Vazovski Mashinostroitelni Zavodi) aimed at developing and producing artillery shells and energetic materials.
The new facility, with an estimated investment of €535 million, will be located in Victoria, Brașov County. Construction is anticipated to commence in 2026, with completion expected within three years, creating approximately 700 local jobs. Romania intends to partially fund its contributions through the European SAFE mechanism, which aims to bolster defence preparedness.
Prime Minister Bolojan noted, “After many years of stagnation within our defence industry, Romania is entering a new era due to the evolving security landscape in Eastern Europe.” He expressed satisfaction that Rheinmetall considers Romania a vital and credible partner, reinforcing its commitment to establishing a presence in the country.
Rheinmetall CEO Armin Papperger noted that the ammunition powder produced at this facility will be in high demand globally, particularly in Europe, thereby positioning Romania as a crucial player in the continent’s defence framework.
“The strategy is to make Romania an integral part of the European ecosystem,” Papperger said. “Romania will also be an integral part of the NATO ecosystem.”
Since the onset of Russia’s full-scale invasion of Ukraine in 2022, Romania has enhanced its role within NATO significantly. The EU member has made a notable contribution by donating a Patriot missile system to Ukraine and has established an international training hub for F-16 jet pilots from allied countries, including Ukraine. This initiative reflects Romania’s commitment to regional security and collaboration with its allies.
