Rheinmetall investment in Romania
Romania ambitiously aims to become a major player in the defense industry
Ştefan Stoica, 04.11.2025, 14:00
The world’s most modern powder factory will be built in Romania, after the government signed an agreement with Rheinmetall, one of the largest defense equipment manufacturers in Europe.
The investment will be made in the city of Victoria and will amount to half a billion euros, 400 million of which contributed by the German company, and 120 million euros by the Romanian side. The new company, called Rheinmetall Victoria, will be the most modern company in the world in the field of double and triple base powder production, said Armin Papperger, the executive director of the German defense giant.
The company, he said, will receive 47 million euros in aid under a Brussels-approved program, while the Romanian government will receive money under SAFE (Security Action for Europe).
The construction of the factory is set to begin in 2026, and the plant is to be operational in two years. The factory will have a production capacity of approximately 60,000 charges and 300,000 modular charges, which means one of the largest capacities in the world for artillery systems. 200 tons of powders will also be produced for local needs, especially for 120mm and medium calibers.
Prime Minister Ilie Bolojan believes that, with this partnership between Victoria S.A and Rheinmetall, Romania will become a player in the defense industry in Southeast Europe.
Ilie Bolojan: “The future powder factory in Victoria means an investment of half a billion euros, approximately 700 new jobs, but above all the advantage of producing powders in Romania. I welcome Rheinmetall’s willingness to renegotiate the association agreement, so that part of the supply chain of the new factory is local.”
The German manufacturer Rheinmetall will have to involve local suppliers in the production chain, which translates into the development of the economic area, not only for the weapons industry, the economy minister Radu Miruţă said after signing the agreement with the German company. According to the minister, these are local metal processing companies and petrochemical and fine mechanics businesses.
This is an aspect that we will take into account in absolutely all the contracts that we will make under SAFE for the coming period, Miruţă also said. According to him, Romania will use this financing instrument to restore the defense industry.
The country will benefit from 16.68 billion euros in funding under the Security Action for Europe mechanism, in the second largest allocation in the EU. Participation in the SAFE program has three components: defense, budget and infrastructure. SAFE is a temporary financial mechanism of the European Union, with a budget of 150 billion euros in low-interest loans. (AMP)
