Rheinmetall has ridden a rise in defence spending since
Russia's invasion of Ukraine last year, with Germany also
supplying aid and weapons to Kyiv.
Rheinmetall makes ammunition and other military equipment as
well as jointly producing the Leopard tanks that Germany is
sending to Ukraine with Krauss-Maffei Wegmann.
(Reporting by Victoria Waldersee; Editing by Kirsten Donovan)
May 13 (Reuters) - Rheinmetall has founded a
joint venture with Ukrainian state-owned conglomerate
Ukroboronprom to build and repair tanks in Ukraine, the company
said on Saturday.
Closing of the agreement to set up the joint venture is
scheduled for late June with operations to begin from mid-July.
The venture will begin by maintaining and repairing vehicles
transferred to Ukraine by Germany, but will later seek to
jointly produce some Rheinmetall products in Ukraine, the
statement said, leading to the possible joint development of
military systems to export from Ukraine.
Rheinmetall's chief executive Armin Papperger revealed the
plans for the venture to business paper Handelsblatt on Friday,
stating Rheinmetall will hold a 51% stake and provide
management.
The German company expects to sign contracts for two more
joint ventures in the coming days for ammunition and air
defence, according to Handelsblatt.
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