By Anthony Marcus for Eurasia Business News, August 27, 2025. Article n°1747
Romania and German defense technology company Rheinmetall have signed a framework agreement to build a $622 million (535 million euros) munitions ignition powder factory in Romania, a NATO member state in Eastern Europe. The project aims to produce the powder necessary for both Romania’s domestic defense needs and the wider region. Construction is scheduled to start in 2026 and is expected to take three years to complete. When operational, the plant will create around 700 jobs.
The investment is part of Rheinmetall’s broader strategy to expand local production capabilities amid heightened European defense demand driven by the Ukraine conflict and NATO’s push for self-sufficiency. This new facility complements Rheinmetall’s existing production network in Romania, which includes manufacturing of Lynx infantry fighting vehicles, ammunition, and propellants.
Beyond industrial growth and job creation, the project strengthens Romania’s defense sector autonomy and contributes to regional security by establishing locally sustainable supply chains for critical military materials. Rheinmetall has also recently opened Europe’s largest ammunition plant in northern Germany, with plans for similar factories in other NATO countries, underscoring a pan-European defense ecosystem vision.
Rheinmetall AG is a publicly traded company headquartered in Düsseldorf, Germany. It specializes in designing, manufacturing, and marketing equipment and solutions for both military and civilian industries.
Regarding ownership structure as of recent data, individual (retail) investors hold approximately 58.7% of the shares, while institutional investors hold about 41.3%. The largest institutional shareholder is BlackRock, Inc., which holds around 6.81% of the shares. Other major institutional shareholders include The Vanguard Group, Inc., Fidelity Management & Research Co. LLC, UBS Asset Management AG, and Wellington Management Co. LLP, each holding between approximately 2.9% and 4.0%.
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