On Friday, May 29, 2026, German group Rheinmetall AG concluded five contracts with the General Directorate for Armaments (Direcția generală pentru armamente) of Romania’s Ministry of Defense worth a total of 4.768 billion EUR net/5.7 billion EUR gross across five armament programs under the EU’s SAFE (Security Action for Europe) loan program.
KF41 Lynx / Photo: Jakub Link-Lenczowski, MILMAG
Rheinmetall AG is the biggest winner of the SAFE program in Romania, securing the largest international contract package in the group’s recent history. The government in Bucharest has commissioned the Düsseldorf-based technology group to carry out wide-ranging military projects.
To fulfill the orders, Rheinmetall AG will significantly expand its existing production capacity in Romania, which has been in place for many years, and will also ensure technology transfer. A significant share of the added value will be generated in this NATO and EU member state. Deliveries are expected to begin in 2028 and be completed by 2030.
The contracts cover:
- 298 KF41 Lynx infantry fighting vehicles, mostly in the combat infantry carrier variant, as well as mortar carriers, command vehicles and medical evacuation vehicles. The purchase is being carried out under the MLI program (Mașina de Luptă a Infanteriei). It had previously been stated that the acquisition of 232 vehicles would be financed under SAFE, while the remainder would be funded from the budget, amounting to 2,598.4 million EUR instead of the originally planned 2,983.566 million EUR ‒ although reports emerged of the figure being overstated by 1 billion EUR. This will make it possible to equip 15 mechanized infantry battalions;
- 24 Oerlikon Skyranger 35 mm very short-range air defense systems (VSHORAD/C-RAM) worth EUR 470 million on the KF41 Lynx chassis. Until their delivery, Rheinmetall AG will provide operational support for the currently used Flakpanzer Gepard 1A2 self-propelled anti-aircraft gun systems;
- 401,760 rounds of 35 mm ammunition for Oerlikon, Skyranger, Millennium and Gepard anti-aircraft systems for EUR 450 million. Previously, this had been listed as two items: 87,000 rounds for 23.15 million EUR and 400,000 AHEAD programmable rounds for 393.275 million EUR, for a total of 416.425 million EUR, meaning the price has increased;
- 2 offshore patrol vessels of the OPV class for 837 million EUR; previously, one vessel had been priced at 2.7 billion EUR;
- 2 VIS diving operations support vessels for 84 million EUR; previously, the price had been 57 million EUR.
Rheinmetall plans to invest several hundred million euros in Romania, with a significant share of the added value to be generated in this NATO and EU member state on the Alliance’s eastern flank. The project is expected to create thousands of new jobs. More than 200 subcontractors will be integrated into the supply network.
Romania is already one of Rheinmetall’s home markets. Its subsidiary Rheinmetall Automecanica SRL, based in Mediaș in Sibiu County, in the historical region of Transylvania, has operated there for many years. The most important contracts that have already been awarded will also be carried out at other locations.
Mihai Jurca, Head of the Prime Minister’s Office and Coordinator of the inter-institutional working group on the implementation of the SAFE Plan, said:
“The contract concluded between the Romanian authorities and Rheinmetall represents not only an opportunity to modernise Romania’s defence capabilities, but also an important step towards revitalising the national defence industry, as over 50% of production will take place in Romania or in collaboration with local companies. It marks the beginning of a new phase of industrial development that has the potential to become a key driver of Romania’s economic growth and the integration of local industry into the European ecosystem over the next decade.”
“This is a significant success for us. We are grateful for the trust that Romania has placed in us regarding the equipping and modernisation of its armed forces,” said Armin Papperger, CEO of Rheinmetall AG. “Together with our Romanian partners, we will establish a far-reaching defence ecosystem here. This also confirms our ambition to further expand our role as one of the industrial pillars of European security.”
MILMAG Commentary:
The list does not include the contracts that will go to the Italian subsidiary Rheinmetall Italia:
- 7 Oerlikon Skynex very short-range air defense systems for 476 million EUR;
- 2 Millennium naval very short-range air defense systems (C-UAS/C-RAM) for 36 million EUR.
#Major #historic international #contract for #Rheinmetall: #Romania orders #Lynx combat vehicles, vessels and #airdefence systems worth a total of €5.7 billionhttps://t.co/cuccYL1Ma9 pic.twitter.com/ED8p7GcfAP
— Rheinmetall (@RheinmetallAG) June 2, 2026
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