Rheinmetall buys Romanian automaker to speed up repairs of equipment for the Ukrainian Armed Forces
Date: 2024-02-02 Author: Кирило Загоруйко Categories: MILITARY ASSISTANCE
The German concern Rheinmetal announced the acquisition of a controlling stake of 72.5% in the leading Romanian automotive manufacturer Automecanica Medias without disclosing the cost.
As noted in a Rheinmetall press release, the new company will operate in Romania under the name Rheinmetall Automecanica SRL. The agreement still needs approval from the relevant government authorities before it comes into effect, but Rheinmetall estimates the newly acquired company's annual sales potential to be around €300 million and expects order volumes to be "in the triple digit millions" in the current financial year Euro".
It is noted that Automecanica Media is an experienced manufacturer of special vehicles, superstructures and trailers for the civil and military markets. Rheinmetall has been collaborating with Automecanica since 2022 for the maintenance and repair of military vehicles in Satu Mare, Romania. It was this center that was specially created to service the Western weapons of the Ukrainian Armed Forces.
“The plant in the Romanian city of Medias will play a key role in maintaining the operational readiness of Western-made combat vehicles in Ukraine, as well as providing their logistical support. Rheinmetall’s presence in Romania means that forces deployed on NATO’s eastern flank can expect faster response times and more reliable supply chains,” the company added.
It is also noted that in the future, the chassis of anti-aircraft systems belonging to the Romanian military will also be serviced and modernized at this plant.
At the same time, as Defense Express analysts note, although the name of these air defense systems has not been disclosed, the Romanian armed forces are one of the few Gepard operators.
“And given that the vehicle was created on the basis of Leopard 1, this also indicates another profile of the enterprise, as a center for the repair and maintenance of this equipment, including also in the interests of the Armed Forces of Ukraine,” the publication notes.
