Rheinmetall and ROMARM to build powder factory in Romania

By Defence Industry Europe

DSEI 2023 takes place in London 12 to 15 September. Under the motto Move – Sense – Strike, Rheinmetall will be presenting a wide array of its extensive range of products, systems and activities for the digitalised battlefields of tomorrow.
Photo: Ministry of Defence of Hungary.

The Romanian company ROMARM and the German Rheinmetall are set to undertake the project of constructing a powder factory in Romania. The European Commission has allocated EUR 47 million for this investment under the ASAP initiative (Act in Support of Ammunition Production).

 

On Friday, the Romanian Minister of Economy, Radu Oprea, announced on Digi24 television that it would be “the most effective powder in the world”. Oprea also mentioned that the joint factory project is in the preparation stage, and German technicians have already arrived in Romania. In an interview with Radio Free Europe, Oprea informed that the ministry is preparing a law that would accelerate the process of obtaining permits for the construction of facilities for the armaments industry.

 

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As acknowledged by Radio Free Europe, it is currently unknown where the factory could be located. One possible location is Fagaras, as there were powder production facilities there in the past. The website defenseromania.ro commented that EU support is a positive sign in the context of the decline and degradation of powder production facilities in the country after 1990. Romanian media also highlight that Romania is currently forced to import powder from Serbia, which has close relations with Russia.

Romanian sources do not specify the total value of the investment or the possible timelines for its completion. On Friday, the European Commission decided to allocate 500 million euros to European arms companies to increase artillery ammunition production, which is intended to replenish its own stocks and also be designated for aid to Ukraine.

 

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The EC’s decision is aimed at enabling the European defence industry to increase its production capacities to 2 million rounds per year by the end of 2025. Currently, these capacities are estimated at just over 1 million per year. The EU funds are also expected to stimulate additional investments from the industry through co-financing, which is anticipated to result in a total investment amount of approximately EUR 1.4 billion.

 

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