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KYIV, Ukraine – July 30, 2025 – Despite ongoing construction challenges, Rheinmetall AG, a german arms manufacturer, maintains its commitment to begin production of 120mm artillery shells at its new Ukrainian factory in early 2026. The facility, located in ukraine’s Poltava Oblast, is intended to substantially bolster Ukraine’s domestic ammunition production capacity amid continued conflict with Russia.
The project, announced in early 2024, aims to produce up to 300,000 shells annually, addressing critical shortages experienced by Ukrainian forces. Rheinmetall is investing approximately €200 million in the plant, with the Ukrainian government providing land and infrastructure support.The factory will utilize both German and Ukrainian personnel, fostering technology transfer and strengthening ukraine’s defense industrial base.
Rheinmetall CEO Armin Papperger recently voiced frustration with the slower-than-anticipated construction progress in Ukraine, contrasting it with the completion of a comparable facility in Germany. He attributed the delays to logistical complexities and the ongoing security situation within Ukraine, wich impacts supply chains and workforce availability. Despite these hurdles, Papperger affirmed that the project remains on schedule for initial production next year.
Ukraine’s Ministry of Defense has publicly welcomed the initiative, recognizing its strategic importance for long-term defense sustainability. The increased domestic production will reduce reliance on external suppliers and enhance Ukraine’s ability to respond to evolving battlefield needs. Currently, Ukraine relies heavily on ammunition supplies from the United States, Poland, and other NATO allies.
This advancement coincides with other German support for Ukraine’s defense capabilities. Recently, German military specialists successfully restored a damaged Patriot air defense system radar, originally deemed irreparable, at a cost of approximately €100 million. The restoration, coordinated by Bundeswehr Major General Mike Keller, NATO’s coordinator for military support to Ukraine, demonstrates Germany’s commitment to providing advanced technological assistance.
