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Rheinmetall to build €535m ammunition powder factory in Romania

Neil Gerrard Senior Editor, Construction Briefing

28 August 2025

Headquarters of Rheinmetall in Dusseldorf, Germany (Image: nmann77 via AdobeStock - stock.adobe.com) Headquarters of Rheinmetall in Dusseldorf, Germany (Image: nmann77 via AdobeStock - stock.adobe.com)

European weapons manufacturer Rheinmetall will build a powder factory for ammunition in Romania, following a deal with the Romanian state.

European weapons manufacturer Rheinmetall will build a powder factory for ammunition in Romania, following a deal with the Romanian state.

Construction work on the three-year-long, €535 million project in Ictoria (Brasov County), is set to start in 2026.

The news came after a ceremony in Germany involving Rheinmetall CEO Armin Papperger, NATO Secretary General Mark Rutte, German Defence Minister Boris Pistorius, German Vice Chancellor Lars Klingbeil, Bulgarian President Rumen Radem, and Romanian government minister Radu Miruță.

The ceremony followed weeks of negotiations, which saw Romania win changes including the right to veto major decisions on the project, an obligation to involve Romanian suppliers, as well as a cost saving to the Romanian state of €93 million.

The project is expected to lead to 700 direct jobs in the area, according to Romania’s Ministry of Finance.

Romanian state Rheinmetall NATO project powder factory ammunition ceremony negotiations Mark Rutte Boris Pistorius Romania Germany
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