Ukrainian Defense Industry JSC and Rheinmetall established a joint venture. The new company’s operations will include the manufacturing, maintenance, and repair of military equipment.
Ukrainian Prime Minister Denys Shmyhal made the announcement on social media.
It was planned to set up the new entity in June 2023, but it was eventually established on October 18. 51% of the stocks will be held by Rheinmetall, while Ukrainian Defense Industry JSC will own the rest.
"The establishment of the joint venture is, without exaggeration, a historic event, which brings the cooperation between our countries to a whole new level and will help us build the arsenal of the free world together," Shmyhal said.
Back in May 2023, Rheinmetall announced the establishment of a joint venture with UDI.
"Meeting Ukraine’s urgent needs in its fight for freedom and democracy as quickly as possible is a matter of central importance to us at Rheinmetall. Thanks to its expertise and capabilities, Rheinmetall has what it takes to be a valuable and powerful partner to Ukraine, both in the short term and in the long run. We are pleased to have Ukroboronprom, led by Yuriy Husyev, as a very capable and trustworthy partner at our side," said Rheinmetall chief executive officer Armin Papperger.
What benefits Ukraine has from the agreement between Ukrainian Defense Industry and Rheinmetall
The agreement will provide Ukraine with advanced German military technologies, additional jobs, and faster delivery of military equipment from Germany.
According to Rheinmetall, the priorities for cooperation will be the maintenance and repair of the vehicles supplied to Ukraine from Germany.
The next stages will involve joint production of selected Rheinmetall products in Ukraine based on complex technology transfer. In the future, cooperation between Rheinmetall and UDI can also involve joint development of defense systems by teams of Ukrainian and German specialists, which may then be exported from Ukraine.
The German weapons manufacturer is now building a factory in Kyiv.