Strategic agreement with Rheinmetall: the world's most modern powder factory rises in Victoria

The signing by the Government, yesterday, of the agreement with the German giant Rheinmetall AG, regarding the construction of a modern powder factory in the Braşov city of Victoria, represents the opening of the way for a strategic investment with regional and European impact in the field of defense.

Rheinmetall CEO, Armin Papperger, set the dimension of this partnership in a statement that explains both the urgency and the technological stake: "The signing of the cooperation agreement between Rheinmetall and Victoria S.A. represents the establishment of the most modern company in the world at this time for the production of double and triple base powders. Now, these powders are needed all over the world and, especially, in Europe to allow aid for the defense forces and they are also needed in Romania".

In concrete economic terms, Prime Minister Ilie Boljan linked the investment to local development, industrial independence and the strengthening of supply chains: "I am honored to close this contract signing, which is practically the end of a negotiation. With this partnership, Romania is starting to emerge as a potential player in the defense industry in southeastern Europe. I am glad that Rheinmetall sees in us an important and serious partner and is consolidating its presence in Romania. The future powder factory in Victoria means an investment of half a billion euros, approximately 700 new jobs, but, above all, the advantage of producing powders in Romania. I welcome Rheinmetall's willingness to renegotiate the association agreement, so that part of the future factory's supply chain is local. In this way, the production unit will be better integrated into the Romanian economy. I thank Rheinmetall for its willingness to work with suppliers from Romania, so that Romanian companies that are competitive to develop its production capabilities and integrate into the European defense industry chain”.

Designed to achieve unprecedented capacities, the new facility will build approximately 60,000 charges, equivalent to 300,000 modular charges for artillery systems, and will produce 200 tons of powder for local needs, including for the Soviet 120-millimeter caliber and for the medium caliber. The financial package includes investments by Rheinmetall and its partners, which exceed 400 million euros, to which is added Romania's civilian investments, estimated at 120 million euros; the European Union's support is foreseen through dedicated programs, including 47 million euros from a program close to Brussels, complemented by funding available through the SAFE program.

Regarding the European funding available through SAFE, Prime Minister Ilie Bolojan added: "After many years in which our defense industry was little requested, Romania is entering a new stage due to the security situation in Eastern Europe. As you know, we are very close to establishing precisely the projects that will be developed and financed through the European Union's SAFE program. What we are doing these days is finalizing the negotiations for accessing European funds through the SAFE program and we expect these negotiations to be completed in the second half of this month. We will then have a CSAT meeting in which we will approve these endowment plans in the second half of November, and then we will present them to the European Commission."

In addition to the Victoria project, Rheinmetall is strengthening its local industrial infrastructure and its role in the European network. The German giant is already present in our country through the company Rheinmetall Automecanica SRL in Mediaş, where it holds 72.5% of the shares, a company that specializes in the production of military trucks, armored personnel carriers and air defense systems. Rheinmetall is also expanding its service capabilities through a center in Satu Mare and is preparing a competence center in Mediaş, in an approach consistent with the expansion strategy in Eastern Europe and with the broader objective of strengthening European security and industrial capacity.