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Germany\u2019s Rheinmetall AG CEO Armin Papperger (L) and Romania\u2019s Prime Minister Ilie Bolojan (R) shake hands during a press conference at the government headquarters in Bucharest, Romania, November 3, 2025. Photo: EPA\/ROBERT GHEMENT<\/p>\n
Germany\u2019s Rheinmetall AG CEO Armin Papperger (L) and Romania\u2019s Prime Minister Ilie Bolojan (R) shake hands during a press conference at the government headquarters in Bucharest, Romania, November 3, 2025. Photo: EPA\/ROBERT GHEMENT<\/p>\n
Romanian Prime Minister Ilie Bolojan announced on Monday that Rheinmetall plans to invest around 535 million euros in a facility producing ignition powders and modular charges in the town of Victoria, central Romania.<\/p>\n
The government will contribute with a 120-million-euro loan under the EU\u2019s SAFE mechanism (Security Action for Europe), aimed at boosting defence industrial capacity across the bloc.<\/p>\n
Construction is due to begin in 2026 and will take about three years. Once it is operational, the plant is expected to employ 700 workers.<\/p>\n
\u201cThrough this partnership, Romania is starting to emerge as a player with potential in the defence industry of Southeastern Europe,\u201d Bolojan said after signing the agreement with Rheinmetall. \u201cI am glad the company sees us as a serious and reliable partner.\u201d<\/p>\n
Rheinmetall\u2019s Chief Executive, Armin Papperger, said the Victoria facility would be the most advanced plant of its kind in the world, producing double- and triple-base propellants used in artillery systems.<\/p>\n
\u201cThese propellants are essential for supporting defence forces in Europe and beyond,\u201d Papperger said. \u201cWe are building capacity for about 60,000 charges \u2013 or roughly 300,000 modular charges \u2013 one of the largest in the world.\u201d<\/p>\n
Rheinmetall already controls a majority stake in a factory in Media\u0219 in central Romania that produces military trucks, armoured personnel carriers and air defence systems. The company has also announced<\/a> plans to set up a training and excellence centre in Romania to develop local industrial skills.<\/p>\n The deal comes as Rheinmetall steps up its presence in the Balkans, including recent projects in Bulgaria<\/a>, all part of a broader European effort to boost ammunition production amid the continuing war in Ukraine.<\/p>\n