The Ukroboronprom State Concern and the German defense concern Rheinmetall have created a joint venture for tank repair in Ukraine.

In the future, the production of combat vehicles will also be established.

Rheinmetall CEO Armin Papperger made the announcement in an interview with the German Handelsblatt.

According to him, initially the cooperation would cover maintenance and repair of armored vehicles in Ukraine, while the production of tanks would be prepared in parallel.

According to the publication, Papperger discussed the details of the agreement with President Volodymyr Zelensky during his visit to Ukraine.

“The contracts have been signed,” he said.

According to the agreement, Rheinmetall and Ukroboronprom are establishing a joint venture in which Rheinmetall will hold a majority stake of 51% in the new company and will provide the management, media reports.. The plant will be located on the territory of Ukraine.

“Ukraine will benefit from a comprehensive technology transfer as well as a short-term supply of military equipment from Germany,” Papperger said.

In addition, the German company expects to sign contracts for two more joint ventures in the coming days, for ammunition and air defence, according to Handelsblatt.

In March, it became known that the German Rheinmetall defense concern was negotiating the construction of a tank factory in Ukraine.

Back in the first half of February, Militarnyi reported that German armament manufacturer Rheinmetall wanted to supply Ukraine with its latest weapons, including promising KF51 Panther tanks. The concern’s CEO, Armin Papperger, emphasized that negotiations with Kyiv were already ongoing.

In May, Armin Papperger said that the German company Rheinmetall planned to launch the production of air defense systems, automotive equipment, and ammunition in Ukraine. It regarded establishing joint ventures with Ukrainian manufacturers.