Rheinmetall Expands Defence Production Footprint in Romania

Land Forces Modernisation Rheinmetall Expands Defence Production Footprint in Romania

2025-07-29 Source: Press release Rheinmetall 1 min Reading Time

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Germany's Rheinmetall Group has launched a broad local production network in Romania, marking a strategic deepening of its industrial presence in Eastern Europe. The move aims to strengthen Romania's defence industrial base through the domestic manufacture of infantry fighting vehicles, munitions, and associated training services.

Rheinmetall expands its footprint in Romania through a local production network for infantry fighting vehicles, ammunition and training services.(Bild: Rheinmetall AG) — Rheinmetall expands its footprint in Romania through a local production network for infantry fighting vehicles, ammunition and training services.
(Bild: Rheinmetall AG)

Rheinmetall has established a multi-pronged production and service ecosystem in Romania, combining wholly owned subsidiaries with new partnerships among domestic defence and technology firms. At the centre of the initiative is Rheinmetall Automecanica, which will be responsible for the local assembly of the Lynx infantry fighting vehicle, using a resilient supply chain with reduced reliance on external suppliers.

Complementing this core production is Rheinmetall Munitions Romania, which will manufacture medium-calibre ammunition for ground and air defence systems. The Victoria Explosive Powder Factory will focus on propellant production, using Rheinmetall's process technology for a new propylene plant. Local service centres will handle maintenance and support, ensuring system availability for the Romanian Armed Forces.

Key Romanian industrial partners include Uzina Automecanica Moreni, Interactive Software SRL, and MarcTel-SIT, each contributing specialised capabilities to the expanded Rheinmetall network. These partnerships are expected to boost local procurement and assembly, facilitating the transfer of know-how and integration of Romanian expertise into the defence supply chain.

To support workforce development, Rheinmetall has also launched an "Excellence Center" for training and upskilling. Equipped with advanced simulators and designed around the Lynx platform, the facility will deliver hands-on technical training in operations, maintenance and advanced systems development.

According to company statements, the initiative will generate several hundred jobs across manufacturing, engineering, and technical services. By embedding cutting-edge technologies within a domestic context, Rheinmetall aims to support Romania's ambition for a self-sufficient defence industry with long-term sustainability.

Analysts view the move as part of a broader trend of reshoring and localising defence industrial capacities within NATO and EU member states, especially in the context of supply chain security and rising geopolitical tensions.

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