Rheinmetall wins a record EUR5.7bn contract in Romania
The German group is set to supply combat vehicles, air defense systems, ammunition, and naval vessels as part of a vast program backed by the European Union.
Rheinmetall has announced the signing of a defense contract package with Romania totaling €5.7bn, marking the largest international agreement in its recent history. Awarded under the European SAFE (Security Action for Europe) program, the project involves the delivery between 2028 and 2030 of 298 Lynx infantry fighting vehicles, Skyranger air defense systems, medium-caliber ammunition, and four vessels, including two offshore patrol boats.
The German group plans to invest several hundred million euros in Romania, where a significant portion of production will be carried out through technology transfers and the integration of more than 200 local subcontractors. The project is also expected to generate several thousand jobs.
According to Mihai Jurca, Chief of Staff to the Romanian Prime Minister, more than 50% of production will take place in Romania or involve local companies, contributing to the modernization of the country's defense capabilities and the development of its national industry.
Armin Papperger, CEO of Rheinmetall, believes this contract confirms the group's ambition to strengthen its role among the leading industrial players in European security.
Despite the news, the stock was down just over 1% in Frankfurt in mid-afternoon trading and has posted a decline of nearly 25% YTD.
Rheinmetall AG specializes in the design, manufacture and marketing of equipment, components and solutions for the military and civilian industries. Net sales (including intragroup and not including sold divisions) break down by family of products as follows:
- vehicle systems (49%): multi-purpose wheeled and tracked vehicles (tactical military vehicles, support vehicles, logistics vehicles and special vehicles);
- weapon and ammunition systems (32%): automatic cannons for land, air and sea vehicles, smooth-bore weapons, artillery systems, smart projectiles, high-energy lasers, etc.;
- electronic solutions (19%): sensors and networking systems, cyberspace protection solutions, air defense systems, radar systems, technical documentation solutions, integrated electronic systems, drones and automated ground robots, training and simulation solutions.
Net sales are distributed geographically as follows: Germany (38%), Europe (42.9%), Americas (7.9%), Asia and the Middle East (5.1%) and other (6.1%).
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