• 18/07/2024 21:58

Rheinmetall buys majority stake in Romanian defense equipment manufacturer Automecanica

The German defense concern Rheinmetall is buying a controlling stake of 72.5% in the Romanian defense equipment manufacturer Automecanica Medias. This is reported by the Romanian publication Economedia.

Rheinmetall buys a controlling stake in the Romanian manufacturer of military equipment Automecanica

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This agreement must still be approved by the relevant government authorities before it comes into force.

The acquisition of Automecanica Medias marks Rheinmetall's expansion from Düsseldorf into Central Europe, “opening doors to new customer countries in a region with significant sales potential,” company representatives say.

Rheinmetall already has offices in two other countries on NATO's eastern flank, Hungary and Lithuania. In December 2023, Romania awarded Rheinmetall a large air defense order worth €328 million.

Through Rheinmetall Landsysteme GmbH, the group will own 72.5% of the shares of this company, which will operate in Romania under the name Rheinmetall Automecanica SRL. The remaining shares of the company will remain in private hands.

In the medium term, Rheinmetall estimates the annual sales potential of the newly acquired company to be approximately EUR 300 million.

“The joining of Automecanica Medias to the Rheinmetall family marks another important stage in our strategy to strengthen the Group’s presence in Central Europe. which in turn helps to strengthen the defense capabilities of the EU and NATO on the eastern flank of Europe,” says Rheinmetall CEO Armin Papperger.

Automecanica Medias is a long-standing manufacturer of specialty vehicles, truck bodies and trailers for the civil and military markets. Rheinmetall has been cooperating with Automecanica since 2022, when the two partners joined forces to operate a military vehicle maintenance and repair facility in Satu Mare, Romania.

According to the company, the plant in Medias, Romania has a key role to play in supporting the operational readiness of Western-made combat vehicles in Ukraine, as well as providing logistical support.

“Rheinmetall's presence in Romania means that forces deployed on NATO's eastern flank can expect shorter response times and more reliable supply chains,” the company said.

The acquisition marks a further expansion of Rheinmetall’s global automotive production network, which already includes plants in the USA, Canada, Australia, UK, Austria, the Netherlands and Germany.< /p>

minfin.com.ua

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