German defense technology company Rheinmetall and the Romanian government have signed an agreement to build a 535 million euro munitions ignition powder factory in the NATO member state in Eastern Europe.
The project aims to produce the powder necessary for both Romania’s domestic defense needs and the wider region. Construction is scheduled to start in 2026 and is expected to take three years to complete. When operational, the plant will create around 700 jobs, Romania’s industry ministry said.
The investment is part of Rheinmetall’s broader strategy to expand local production capabilities amid increased defense demand in Europe fueled by the Ukraine conflict and NATO’s push for self-sufficiency.
The new facility will complement Rheinmetall’s existing production network in Romania, which includes manufacturing of Lynx infantry fighting vehicles, ammunition, and propellants.
Beyond industrial growth and job creation, the project strengthens Romania’s defense sector autonomy and contributes to regional security by establishing locally sustainable supply chains for critical military materials.
Rheinmetall, Europe’s largest European arms producer, will produce the powder necessary for domestic defence needs and for the entire region.
The company also recently opened Europe’s largest ammunition plant in northern Germany, with plans for similar factories in other NATO countries, underscoring a pan-European defense vision.
Rheinmetall AG is a publicly traded company headquartered in Düsseldorf, Germany. It specializes in designing, manufacturing, and marketing equipment and solutions for both military and civilian industries.
