Romania has signed a package of contracts worth EUR5.7 billion with the German defence firm Rheinmetall for the supply of combat vehicles, air defence systems, ammunition and ships, the company has announced.
Rheinmetall describes it as the largest international order in its recent history.
The package includes 298 Lynx combat vehicles, Skyranger air defence systems, medium-calibre ammunition, ammunition components, as well as four vessels – two offshore patrol vessels and two vessels for diving operations. Deliveries are set to begin in 2028 and be completed in 2030.
The deal is of not only military but also industrial significance for Romania. Rheinmetall plans to significantly expand its capacity in the country and invest several hundred million euros. Over 50% of production is to be carried out in Romania or in cooperation with local companies, and the supply chain is set to include more than 200 subcontractors.
According to Rheinmetall CEO Armin Papperger, the company, together with its Romanian partners, intends to create a “broad defence ecosystem” in the country. Mihai Iurca, the Romanian representative for the SAFE programme, noted that the contract should not only modernise Romania’s defence capabilities but also serve as a step towards reviving the national defence industry.
The new deal forms part of a broader process to strengthen Romania’s defence industry on NATO’s eastern flank. Earlier, Romania and Rheinmetall agreed to build a EUR535 million gunpowder production plant in the town of Victoria in Brașov County. Construction is set to begin in 2026, take around three years and create approximately 700 jobs.
For the region, this is one of the largest defence industry projects in recent years. Romania is strengthening its role as a military and industrial hub for NATO on the Black Sea, whilst Rheinmetall is establishing itself as one of the main suppliers of equipment, ammunition and air defence systems to Eastern European countries.
