German arms maker begins combat vehicle production in Ukraine
The German arms factory Rheinmetall has started production in Ukraine. The facility specializes in the production and maintenance of combat vehicles, and by the end of the year, it plans to launch a production line for Lynx infantry fighting vehicles. Dmitry Medvedev has threatened consequences.
The first of the four planned armament plants by the German Rheinmetall Group has become operational in Ukraine. According to information provided by CEO Armin Papperger in an interview with Ukrainian television TSN, the plant specializes in the production and maintenance of combat vehicles.
Before the end of this year, there are plans to launch a production line for modern Lynx infantry fighting vehicles, with the first batch expected to include 10 units. At the same time, the construction of a second plant is already underway.
Strategic investments in the Ukrainian defence industry
The launch of the first factory marks a significant moment for German-Ukrainian cooperation in the defence sector. Both the German government and Rheinmetall have faced criticism over the past few months for delays in implementing the promised investments in Ukraine. Currently, the operational plant is servicing infantry fighting vehicles and tanks, which constitutes a crucial element of technical support for the Ukrainian armed forces.
The ownership structure of the project is based on a majority, 51-percent stake by Rheinmetall, in collaboration with the Ukrainian defence industry. CEO Papperger points to the Ukrainian army's vast need for modern combat equipment. According to his estimates, the real need amounts to about 3,000 Lynx infantry fighting vehicles, but fulfilling orders on such a scale is currently impossible due to budgetary constraints.
Last year, the company also presented ambitious plans regarding tank production on Ukrainian territory. The production of 400 Panther tanks was planned, but according to reports from Ukrainian media, the priority for the Ukrainian side currently remains infantry fighting vehicles. As emphasized by Ukraine's Minister of Industrial Transformation Kamyshyn, this type of equipment is now most needed by the armed forces.
Comprehensive program to expand production capabilities
Rheinmetall's investment plan involves establishing four specialized manufacturing plants. The second factory, which is already under construction, will focus on producing gunpowder, a strategic component necessary for ammunition production. The third plant will specialize in producing NATO-standard ammunition, while the fourth will manufacture air defence systems.
Rheinmetall's CEO highlights significant successes in supplying military equipment to Ukraine. Recently, the planned delivery of Marder 1A3 infantry fighting vehicles was completed for the third quarter of 2024. The total number of these types of vehicles delivered has already reached around 200 units. The company maintains a steady rate of refurbishing these vehicles, preparing 10 monthly units for the Ukrainian armed forces.
An especially important aspect of the planned investments is the construction of ammunition manufacturing plants. According to Papperger's declarations, the new factories are to achieve production capacities allowing for a two- or even threefold increase in the production of NATO-standard ammunition. The production of hundreds of thousands of artillery shells with a calibre of 155 mm and appropriate propelling charges is planned.
Reactions and threats from Russia
The announcement of the first factory's launch was met with an immediate and aggressive reaction from Russian authorities. Dmitry Medvedev, Deputy Chairman of the Russian Security Council, posted a direct threat on social media to destroy the plant. He attached a video depicting an explosion, suggesting a possible attack on the facility.
This is not the first threat from Russian authorities regarding Rheinmetall's investments in Ukraine. As early as July, when the company announced the signing of a contract for the supply of equipment to a planned ammunition factory worth over €100 million CAD, Russian Foreign Ministry spokesperson Andrei Nesterenko issued a statement saying that any such site on Ukrainian territory would constitute a legitimate target for Russian armed forces.
Previous threats were also made in March 2023, when Rheinmetall presented plans to build a tank factory. At that time, former Russian President Dmitry Medvedev threatened to bomb the facilities using cruise missiles. The CEO of Rheinmetall remains steadfast against Russian threats, emphasizing the need to accelerate the implementation of all planned investments due to Ukraine's urgent defence needs.
