On Monday, July 28, 2025, the German group Rheinmetall AG announced that it is expanding local production in Romania through new industrial partnerships, following the establishment of Rheinmetall Automecanica SRL last year. The group will focus on the production of KF41 Lynx infantry fighting vehicles and ammunition, as well as an Excellence Center equipped with advanced simulators.
Photo: Rheinmetall AG
Rheinmetall AG has established a comprehensive local production network in Romania, which includes both its subsidiaries in the country and new partnerships with Romanian companies.
On February 1, 2024, Rheinmetall Landsysteme acquired a 72.5% majority stake in the Romanian company Automecanica Mediaș, based in the town of Mediaș, Sibiu County, in the historical region of Transylvania. As a result, on May 16 of the same year, the company Rheinmetall Automecanica SRL was launched.
Through this move, Rheinmetall AG is expanding its presence in Romania and reinforcing its position as a leading manufacturer and service provider to the Romanian Armed Forces. Delivering advanced, ready-made solutions in the production of infantry fighting vehicles (IFVs), ammunition, and propellants, as well as state-of-the-art training services, is expected to strengthen Romania’s defense industry in the long term. The network includes Rheinmetall Automecanica, other local Rheinmetall operations, and a new Center of Excellence for training and continuous education.
The cornerstone of Rheinmetall’s activities in Romania is its collaboration with key Romanian companies, such as Uzina Automecanica Moreni, Interactive Software SRL, and MarcTel-SIT. These partnerships will promote local sourcing and assembly processes, supporting the integration of Romanian expertise into the production chain.
The initiative focuses on the local production of the KF41 Lynx infantry fighting vehicle, which is being offered to the Romanian Armed Forces. Production will take place at Rheinmetall Automecanica’s facilities, supported by a robust supply chain and reduced dependence on external suppliers (Romania’s Ministry of Defense is seeking a supplier for 298 tracked IFVs).
Rheinmetall Munitions Romania will manufacture medium-caliber ammunition for infantry fighting vehicles and air defense systems. At the same time, the Victoria Explosive Powder Factory will produce propellant materials, with Rheinmetall providing the expertise and technology for the polypropylene production plant. Local service centers will be responsible for routine maintenance and operational support of military equipment, thus ensuring constant operational readiness.
The Rheinmetall Center of Excellence in Romania aims to transfer essential know-how to local workers. Equipped with cutting-edge simulators and comprehensive training programs, the center will give Romanian personnel hands-on experience and technical expertise in the operation, maintenance, and development of advanced defense technologies, especially those related to the KF41 Lynx IFV.
Rheinmetall’s investment in local production will make a significant contribution to the Romanian economy, creating hundreds of jobs across various sectors, including manufacturing, engineering, and technical services. Collaboration with Romanian companies will also strengthen local supply chains, generate additional business opportunities, and promote industrial growth.
With this strategic initiative, Rheinmetall Automecanica will not only enhance Romania’s defense capabilities but also lay the foundation for a sustainable and independent defense industry. By integrating advanced technologies and training, Rheinmetall will ensure the future viability of Romania’s defense sector while simultaneously expanding its global production network.
#Rheinmetall expands local production in #Romania 🇷🇴 and strengthens the Romanian #defence #industry – Focus on #ammunition and #Lynx infantry fighting vehicle https://t.co/x55t8nEppn pic.twitter.com/UPDFFRkEns
— Rheinmetall (@RheinmetallAG) July 28, 2025