The German arms manufacturer Rheinmetall announced on Tuesday that it has signed contracts worth 5.7 billion euros with the Romanian Army, describing them as „the largest package of international contracts in the company’s recent history”.
In a press release published on Tuesday, Rheinmetall specified that these contracts, awarded under the Security Action for Europe (SAFE) program, include: 298 Lynx vehicles, a state-of-the-art family of combat vehicles, Skyranger air defense systems, medium-caliber ammunition for air defense, armored personnel carriers, two offshore patrol vessels, and two support vessels for divers. Deliveries are scheduled to begin in 2028 and be completed by 2030.
"Rheinmetall is set to invest hundreds of millions of euros in Romania, with a significant proportion of the added value being generated in this NATO and EU member state, located on the eastern flank of the Alliance. The project is estimated to create thousands of new jobs. Over 200 subcontractors will be integrated into the supply network," the German company stated.
Romania is already one of the markets where the German company is present. Its subsidiary, Rheinmetall Automecanica, based in Mediaș, has been active for many years. The major contracts now awarded will also be executed in other locations.
"The contract concluded between the Romanian authorities and Rheinmetall represents not only an opportunity to modernize Romania's defense capabilities, but also an important step towards revitalizing the national defense industry, as over 50% of the production will take place in Romania or in collaboration with local companies. This marks the beginning of a new phase of industrial development with the potential to become a key driver of Romania's economic growth and the integration of the local industry into the European ecosystem over the next decade," stated Mihai Jurca, the head of the Prime Minister's Chancellery, quoted in the company's press release.
"We are grateful for the trust that Romania has placed in us regarding the equipping and modernization of its armed forces. Together with our Romanian partners, we will create a large-scale defense ecosystem here," said the CEO of Rheinmetall AG, Armin Papperger.
Rheinmetall produces tanks, military trucks, artillery, anti-aircraft defense systems, and ammunition, all of which are in high demand in the context of the war in Ukraine. Defense business accounts for 80% of the company's sales.
In 2024, Rheinmetall reported group sales of 9.75 billion euros, a 36% increase compared to 2023. Armin Papperger aims for Rheinmetall to achieve sales between 40 and 50 billion euros by 2030