Rheinmetall signs EUR 5.7 billion contract with Romania

Germany's Rheinmetall, a leading international systems supplier in the defence industry, on Tuesday announced having signed a EUR 5.7 billion contract with Romania that it called "the largest international contract package in the company's recent history."In a press statement released on Tuesday, Rheinmetall says that the contract package falls under the European Union's Security Action for Europe (SAFE) programme and includes 298 Lynx vehicles, a latest-generation family of combat vehicles; Skyranger air defence systems; medium-calibre ammunition for air defence and armoured personnel carriers; two offshore patrol vessels; two diver support vessels. Deliveries are scheduled to begin 2028 and be completed by 2030.According to the company, Rheinmetall is set to invest several hundred million euros in Romania, with a significant proportion of the value added being generated in this NATO and EU member state on the Alliance's eastern flank. The project is expected to create thousands of new jobs. Over 200 subcontractors will be integrated into the supply network.Romania is already one of Rheinmetall's home markets. Its subsidiary Rheinmetall Automecanica, based in Medias, has been active there for many years. The major contracts now awarded will also be carried out at other sites."The contract concluded between the Romanian authorities and Rheinmetall represents not only an opportunity to modernise Romania's defence capabilities, but also an important step towards revitalising the national defence industry, as over 50% of production will take place in Romania or in collaboration with local companies. It marks the beginning of a new phase of industrial development that has the potential to become a key driver of Romania's economic growth and the integration of local industry into the European ecosystem over the next decade," Head of Romania's Prime Minister's Office and Coordinator of the inter-institutional working group on the implementation of the SAFE Plan Mihai Jurca is quoted as saying in the statement."We are grateful for the trust that Romania has placed in us regarding the equipping and modernisation of its armed forces. Together with our Romanian partners, we will establish a far-reaching defence ecosystem here. This also confirms our ambition to further expand our role as one of the industrial pillars of European security," says Rheinmetall AG CEO Armin Papperger.Rheinmetall makes tanks, military trucks, artillery, air defence systems and ammunition, all of which are in high demand amid the ongoing war in Ukraine. Defence businesses account for 80% of the company's sales.In 2024, Rheinmetall reported group-wide sales of EUR 9.75 billion, a jump of 36% from 2023. Armin Papperger has set his sights on Rheinmetall to reach sales of between EUR 40 billion and EUR 50 billion by 2030.