Romania to build the world's most modern powder plant: agreement with Rheinmetall

German concern Rheinmetall to build a steel plant in Romania a gunpowder plant. The joint venture agreement was signed with Pirochim Victoria in Bucharest on November 3, reported Rheinmetall on its website.

"Gunpowder remains a strategic bottleneck in the defense industry. The new production capacity in Romania is another step towards our goal of reaching an annual production capacity of 20,000 tons of gunpowder by 2030," Rheinmetall CEO Armin Papperger commented on the deal.

About rheinmetall's plans to build a powder plant in this country was announced in March 2024. The project was developed jointly with the European Commission. The plant in Romania has a chance to become the largest in the world, in August, the Ministry of Economy reported.

"Rheinmetall-Victoria SA will now become the most modern company in the world producing two- and three-component powders. These powders are needed all over the world, especially in Europe, to support defense forces, including in Romania," he said citation Papperger, the press service of the Romanian ministry.

"Thanks to this partnership, Romania is beginning to emerge as a potential player in the defense industry in Southeast Europe. I am pleased that Rheinmetall considers us an important and serious partner and is strengthening its presence in our country," said Romanian Prime Minister Ilie Bologian.

The total investment in the plant will amount to more than half a billion euros. Rheinmetall holds a 51% stake in the joint venture, while Pirochim Victoria holds the remaining 49%.

The plant will be built in the city of Victoria, Brasov County. The investment is about half a billion euros and will create about 700 new jobs. Construction of the plant will begin in 2026 and production is expected to start in two years.

Romania will try to finance part of its contributions through european SAFE mechanism to improve defense capabilities.

The expected annual production capacity of the plant will be about 300,000 modular powder charges, which will require approximately 750 tons of powder. Additionally, the plant will produce 200 tons of powder to meet local demand.

• At the end of October Rheinmetall and Bulgaria sign a €1 billion deal on the construction of a plant for the production of ammunition and gunpowder.