Romania will have one of the most advanced ammunition powder factories in the world in a few years.
The project, carried out in partnership with the European giant Rheinmetall, will be built in Victoria, in Brașov county, and involves a huge investment of 535 million euros.
Contract signed in Germany
The Minister of Economy, Radu Miruţă, announced on Wednesday the signing of the contractual framework for this strategic investment, during a ceremony held in Germany. Alongside him were the CEO of Rheinmetall, Armin Papperger, as well as high-ranking officials: NATO Secretary General Mark Rutte, German Defense Minister Boris Pistorius, Vice Chancellor Lars Klingbeil, and the President of Bulgaria, Rumen Radev.
"Today's ceremony comes after several intense weeks of discussions and negotiations, serious work, with respect for partners, but with the firmness to defend Romania's interests," the Ministry of Economy stated.
A unique factory in the world
The new powder factory will be built from scratch in the town of Victoria and could become "the most advanced in the world," according to Romanian officials.
The project is expected to start in 2026 and be completed within three years. Additionally, the investment will create 700 direct jobs in the area.
The Romanian state and Rheinmetall will produce powder here for domestic needs, as well as for the region, strengthening Romania's position as an important player in the European defense market.
Difficult negotiations, better results
Radu Miruţă explained that upon taking office, he found a contract with disadvantageous clauses for Romania. "I could not accept conditions less advantageous than what we have today for Romania. Today, we have demonstrated that, if you negotiate correctly and firmly, you can change even what others said was impossible," the minister stated.
Following the renegotiations, Romania obtained a veto right over major decisions, mandatory involvement of local suppliers, fair licensing costs, and a clear stake for the state. Additionally, the Ministry specified that the state saved over 93 million euros.
"I do not yield when it comes to Romania's interest"
"This is why I insist that professionals lead state-owned companies: so that strategic investments like this have the right framework and people. I do not yield. And I will not yield when it comes to Romania's interest," emphasized Miruţă.
Romanian officials pointed out that the results were possible also due to the support of the Presidential Administration, the Prime Minister, and the negotiating team.
Rheinmetall, expansion in Europe
Rheinmetall, the largest European arms manufacturer, is concurrently carrying out investments in other countries. In Bulgaria, the company will produce gunpowder and 155 mm artillery projectiles in partnership with local authorities, in a project estimated at over one billion euros. Details HERE.
In Romania, Rheinmetall acquired the majority stake in the Automecanica Mediaș company last year, where it is set to produce Lynx armored vehicles.