“Rheinmetall AG and Ukrainian Defense Industry Unite to Forge New Ventures in Kyiv”
The technology corporation Rheinmetall and Ukraine’s state-operated Ukrainian Defense Industry JSC (UDI, previously Ukroboronprom) have established a collaborative venture in Kyiv. Denys Shmyhal, Ukraine’s Prime Minister, revealed this information during the German-Ukrainian Business Forum in Berlin, which was also graced by German Chancellor Olaf Scholz.
Rheinmetall Ukrainian Defense Industry LLC has been functioning since 18 October 2023. It is jointly held by Rheinmetall Landsysteme GmbH, possessing a 51% share, and UDI, which retains the remaining 49%. Strategic collaboration in the defense sector between the two entities commenced in May 2023. On 28 September 2023, Germany’s Federal Cartel Office granted approval to the new joint venture, followed by endorsements from the relevant authorities in Poland and Ukraine in early October. A few days thereafter, Rheinmetall Ukrainian Defense Industry was officially registered and began its operations.
The joint venture will engage in services and maintenance, as well as the assembly, production, and development of military vehicles, initially focusing solely within Ukrainian sovereign boundaries. “In Germany, there are no overlaps in competition and no signs of competition-related issues,” asserted the Federal Cartel Office in a press statement dated 28 September 2023.
Originally announced in May 2023, the partnership between Rheinmetall and the Ukrainian defense sector aims to bolster Ukraine’s domestic defense manufacturing and, ultimately, its national security. The strategy envisions establishing collaborative defense industry capabilities within Ukraine.
Ukraine stands to gain from this partnership in numerous ways, including the establishment and enhancement of defense technology capabilities domestically, increased local value addition, and expedited delivery of military assets from Germany.
Service and maintenance of military vehicles delivered to Ukraine either directly or through the German government’s “Ringtausch” multilateral equipment exchange initiatives represent the initial phase of collaboration between Rheinmetall and UDI. This cooperation will soon broaden to include the joint production of select Rheinmetall products in Ukraine.
About Rheinmetall: Based in Düsseldorf, Rheinmetall AG is a technology firm with approximately 28,000 personnel across 132 locations worldwide. In 2022, the Group reported revenues of €6.4 billion. Recognized as one of the leading defense contractors globally, Rheinmetall is also a catalyst for innovative technological and industrial advancements in the civilian sector. A strong commitment to sustainability is a key element of Rheinmetall’s corporate strategy.
About Ukrainian Defense Industry JSC (previously Ukroboronprom): As a state-owned entity, Ukrainian Defense Industry JSC employs 67,000 individuals engaged in the manufacturing and maintenance of armored vehicles, missiles, artillery, radar, and aircraft. Since the onset of the Russian invasion, the organization has been unwavering in its support of the nation’s military efforts.
