German arms manufacturer Rheinmetall said on Thursday it plans to set up at least four factories in Ukraine, as it targets a record €10bn ($10.9bn) in sales this year, The Guardian has quoted AFP as saying.
The company said the factories in Ukraine – which has been suffering from ammunition shortages as Moscow makes battlefield gains – would be for producing shells, military vehicles, gunpowder and anti-aircraft weapons.
"Ukraine is now an important partner for us, where we see a potential of between €2-3bn [in sales] per year," Rheinmetall CEO Armin Papperger said at the presentation of the company’s 2023 results.
The Duesseldorf-based group – which makes parts of the Leopard tanks that Berlin agreed could be sent to Ukraine after much hesitation – reported record sales of €7.2bn last year, and is aiming to top €10bn in 2024.
Germany’s largest manufacturer of military equipment had already announced an agreement with a Ukrainian company in February to build artillery shells in Ukraine.
The groundbreaking will take place soon for the plant – in an undisclosed location – and it will be modelled on an ammunition factory that Rheinmetall is building in Germany.
The company already operates a joint venture in Ukraine for repairing military vehicles.
The company said it was planning to ramp up production of artillery shells, as Ukraine’s European allies struggle to boost output so they can provide Kyiv with more ammunition.