Germany's Rheinmetall (RHMG.DE) has set up a joint venture with Ukraine's Ukroboronprom to manufacture and repair tanks in Ukraine, Reuters reports, citing Handelsblatt.
"The contracts have been signed," said Rheinmetall CEO Armin Papperger, adding that cooperation will cover the maintenance and repair of armoured vehicles in Ukraine, while preparing the production of tanks.
Rheinmetall will hold a 51% controlling stake in the new company and will be in charge of management.
In addition, in the coming days, the German company expects to sign contracts for two more joint ventures - for the supply of ammunition and air defence.
"Ukraine will benefit from comprehensive technology transfer as well as short-term supplies of military equipment from Germany," Papperger said.
Rheinmetall manufactures ammunition and other military equipment, as well as Leopard tanks, which it produces jointly with Krauss-Maffei Wegmann.
In February, it became known that the German defence concern Rheinmetall was ready to build a plant in Ukraine to produce the latest tanks. In March, President of Ukraine Volodymyr Zelenskyy met a delegation of the concern led by Papperger.
Subsequently, Prime Minister Denys Shmyhal said that Ukraine was considering the possibility of joint production of Skynex short-range air defence components with Rheinmetall.