Rheinmetall Expands Defense Production in Romania

Rheinmetall is expanding both its presence in Romania and its role as a manufacturer and service provider for the Romanian armed forces, according to a statement sent via email, Bloomberg reports. The company will focus on local production of ammunition and Lynx infantry fighting vehicles, the same source adds. Rheinmetall acquired the majority stake in Automecanica Medias last year.   According to the German company’s statement, “Rheinmetall has established a comprehensive local production network in Romania, which includes both its own subsidiaries in the country and new partnerships with Romanian companies. In this way, the technology group is expanding both its presence in Romania and its status as a leading manufacturer and service provider for the Romanian armed forces. The delivery of advanced turnkey solutions for the production of infantry fighting vehicles, ammunition and propellants, as well as state-of-the-art training services, is expected to strengthen Romania’s defense industry in the long term. The network includes Rheinmetall Automecanica, other local Rheinmetall operations, and a new center of excellence for training and continuous education.”   A cornerstone of Rheinmetall’s localization efforts is its cooperation with key Romanian companies, including Uzina Automecanica Moreni, Interactive Software SRL, and MarcTel-SIT. These partnerships will support local procurement and assembly processes and foster the integration of Romanian expertise into the production chain.   The initiative focuses on the local production of the Lynx infantry fighting vehicle at Rheinmetall Automecanica, with a robust supply chain and reduced dependence on external suppliers. Rheinmetall Munitions Romania will produce medium-caliber ammunition for infantry fighting vehicles and air defense systems, while the Victoria Explosive Powder Factory will manufacture propellants, with Rheinmetall providing expertise and technology for a propellant production facility. Local service facilities will be responsible for ongoing maintenance and support of military equipment, thus ensuring constant operational readiness.   Rheinmetall’s Center of Excellence in Romania will ensure the transfer of critical know-how to the local workforce. Equipped with state-of-the-art simulators and comprehensive training programs, the center will offer Romanian employees hands-on experience and technical expertise in operating, maintaining, and developing advanced defense technologies, particularly the Lynx infantry fighting vehicle. Rheinmetall’s investment in local production will significantly contribute to Romania’s economy by creating hundreds of jobs across sectors such as manufacturing, engineering, and technical services. The cooperation with Romanian companies will also strengthen local supply chains, generate additional business opportunities, and promote industrial growth. Through this strategic initiative, Rheinmetall Automecanica is not only enhancing Romania’s defense capabilities but also laying the foundation for a sustainable and independent defense industry. By integrating advanced technologies and professional training, Rheinmetall is securing the future viability of Romania’s defense sector while expanding its own global production network.   On July 18, 2025, during an official visit to Germany, President Nicusor Dan was asked at a joint press conference with German Chancellor Friederich Merz about Rheinmetall’s investment in the Medias facility.