German arms manufacturer doubles down on Ukrainian tank plant plans
German arms manufacturer Rheinmetall is sticking to its plans for the construction of a tank factory in Ukraine, company CEO Armin Papperger told the Bild tabloid on Friday. It comes a day after Russia warned that it would consider the facility a legitimate target in the ongoing conflict.
“We will not be dissuaded from helping [Ukraine],” Papperger said, when asked about the fate of the planned facility, adding that Kiev’s troops have “effective capabilities to defend [themselves] against attacks on sensitive targets.”
He also vowed to use the company’s own air defenses to protect the plant, according to Bild.
Rheinmetall is currently working closely with Ukraine’s state defense giant, Ukroboronprom, Papperger said, adding that his partners “already have a large number of locations” in the country where a factory can be built.
The defense industry giant first announced its plans to set up the facility in Ukraine back in March. No information about a potential location for the tank plant has yet been made public.
On Thursday, Russian Foreign Ministry spokeswoman Maria Zakharova blasted Rheinmetall’s plans as a “global provocation.” She suggested that the factory may be located close to a predominantly Hungarian settlement in Transcarpatia, one of Ukraine’s westernmost regions.
Such a plant would be a “legitimate target for the Russian forces,” like any other Ukrainian defense industry facility, Zakharova warned at that time.
Rheinmetall will hold the majority of shares in the joint venture with Ukroboronprom, Bild reported. The facility will reportedly be capable of producing ammunition, armored vehicles, and Rheinmetall’s brand new Panther-type main battle tanks.
An upgrade to Germany’s most modern Leopard 2A7 tanks, the Panther KF51 tank was first unveiled by the company in June 2022. It’s said to have roughly the same armor as its predecessor but is equipped with a fully auto-loaded cannon of a larger caliber and has a crew of three instead of four. Rheinmetall has yet to produce a single Panther KF51 tank beyond the demonstration model, however.
In February, Papperger told Germany’s Handelsblatt media outlet that his company was in talks with Kiev over KF51 tank deliveries and could be ready to send them to Ukraine “in 15 to 18 months.” He did not specify the number of Panther tanks that could be supplied.
According to Bild, the plant Rheinmetall plans to build in Ukraine would be capable of producing as many as 400 such tanks per year. In March, the company announced plans to invest some $200 million in the project.
A decision by Washington and its allies to supply Kiev with weapons amid its conflict with Moscow and to ramp up military production has resulted in a boon for defense contractors, including Rheinmetall. The company’s earnings hit a record of €6.4 billion ($7 billion) last year, an increase of 27% from 2021.
Russia has repeatedly argued that continued arms supplies to Kiev will only prolong the conflict and extend human suffering.
