Rheinmetall plans to establish another joint venture in Ukraine that will specialize in air defense systems.

Armin Papperger, Rheinmetall CEO, announced this during Rheinmetall’s general meeting.

It is not reported when will the construction of the new plant begin. However, as stated in the announcement, this may happen within one to two years.

Besides, any production at this plant will not start immediately, as it will require establishing a supply chain.

The joint venture will also serve as a repair base for the air defense systems that Germany has transferred to Ukraine, namely IRIS-T SL, Skynex 30, and Gepard.

Over the past year, Rheinmetall has repeatedly announced plans to establish its subsidiaries in Ukraine.

One of these is to be a plant, where the German company plans to localize the production of Fuchs wheeled armored personnel carriers and Lynx armored fighting vehicles.

Papperger explained that the production of Fuchs armored personnel carriers in Ukraine will be possible by the end of summer 2024, and the production of Lynx armored fighting vehicles may begin in the summer of 2025.

Rheinmetall’s overall plans for its subsidiaries in Ukraine are very ambitious, as the company says they should be implemented within two to three years.

The German concern is already Ukraine’s largest partner in the defense industry. In 2022, the group received orders worth about €900 million, and in 2023, the volume of orders increased to about two and a half billion euros.

In addition to the German company, the British company BAE Systems is also planning to set up subsidiaries.

Militarnyi previously reported that the British defense contractor BAE Systems is ready to help Ukraine build spare parts for 105-mm L119 lightweight towed howitzers.

The production of light howitzer parts at existing facilities in Ukraine is considered a potential precursor for other more complex weapons.