Together: Rheinmetall and Ukrainian Defense Industry in Kyiv

The technology group Rheinmetall AG and the Ukrainian state conglomerate Ukrainian Defense Industry JSC (UDI, formerly Ukroboronprom) have established a joint venture in Kyiv. This was announced by the Ukrainian Prime Minister, Denys Schmyhal, during the German-Ukrainian Economic Forum in Berlin, which was also attended by Chancellor Olaf Scholz. The Rheinmetall Ukrainian Defense Industry LLC has been operational since October 18, 2023. Rheinmetall Landsysteme GmbH holds 51% of the shares in the joint venture, while UDI holds 49%.

The strategic cooperation in the defense sector was initiated by the two companies back in May 2023. On September 28, 2023, the Federal Cartel Office approved the establishment, and in early October 2023, the relevant authorities in Poland and Ukraine also gave their approval. A few days later, the Rheinmetall Ukrainian Defense Industry was officially registered and began its business activities.
The joint venture will focus on service and maintenance services, assembly, production, and development of military vehicles, initially operating exclusively within Ukraine. "In Germany, there are neither competitive overlaps nor indications of competitive concerns," stated the Federal Cartel Office in its press release on September 28, 2023.

The cooperation launched in May 2023 between Rheinmetall and the Ukrainian defense industry aims to strengthen the defense industry base of Ukraine and ultimately enhance the national security of the country. The plan is to gradually build joint capabilities in defense technology in Ukraine.

Through this cooperation, the country benefits from the development of local defense capacities, additional local value creation, and the short-term supply of military equipment from Germany.

The first collaborative step between Rheinmetall and UDI involves the maintenance of military vehicles provided to Ukraine through programs facilitated by the German federal government and through direct deliveries. The cooperation is expected to expand to the joint manufacturing of selected Rheinmetall products in Ukraine in the near future.

About RHEINMETALL: Rheinmetall AG, based in Düsseldorf, is a technology group that employs approximately 28,000 people at 132 locations worldwide. The company recorded a revenue of 6.4 billion EUR in 2022. Rheinmetall is a leading international defense industry system provider and a driver of cutting-edge technological and industrial innovations in civilian markets. Sustainability is an integral part of Rheinmetall's strategy.

About UKRAINIAN DEFENSE INDUSTRY (formerly Ukroboronprom): Ukrainian Defense Industry is a state-owned Ukrainian defense industry company with 67,000 employees working in various areas of defense system production – including the manufacturing and maintenance of armored vehicles, rockets and artillery, radar systems, and aircraft construction. Since the early days of the war with Russia, the company has been supporting the military capabilities of the Ukrainian Armed Forces.