Rheinmetall to Build €500 Million Gunpowder Plant in Romania

Romania has reached an agreement with the German defense giant Rheinmetall to build a state-of-the-art gunpowder manufacturing plant for ammunition.

The Romanian Ministry of Economy reported on this.

On Wednesday, August 27, Radu Miruță, Romania’s Minister of Economy, signed the framework agreement in Berlin. Rheinmetall CEO Armin Papperger, along with senior officials from Europe and NATO, attended the ceremony.

The new gunpowder plant will be built in the city of Victoria, located in the central part of the country.

It will produce gunpowder needed for the defense industry, both for Romania’s domestic needs and for the entire region.

According to the Ministry, the construction of the facility, which is scheduled to begin in 2026 and last for three years, will involve an investment of €535 million.

The plant will also create 700 new jobs.

The German corporation Rheinmetall has previously also agreed to build two factories in Bulgaria for the production of gunpowder, artillery shells, and drones.