Romania and Rheinmetall to build EUR 535 mln gunpowder plant, set to be world’s most advanced

Romania has signed a landmark agreement with German defense group Rheinmetall to build a EUR 535 million ammunition powder plant that officials say will be the most advanced facility of its kind worldwide, the Economy Ministry announced. The project is seen as a strategic step in strengthening Europe’s defense industry at a time of heightened security concerns.

Economy minister Radu Miruță finalized the contract on behalf of the Romanian government, paving the way for the construction of the new facility in Victoria, Brașov county. Work is expected to begin in 2026 and take three years to complete.

Once operational, the factory will produce ammunition powder both for Romania’s domestic needs and for the wider region.

The signing ceremony brought together senior figures including Rheinmetall CEO Armin Papperger, NATO secretary-general Mark Rutte, German defense minister Boris Pistorius, vice chancellor Lars Klingbeil, and Bulgarian president Rumen Radev.

“This investment secures Romania’s position as a relevant player in the regional defense sector,” the ministry’s press release reads.

The project is set to create around 700 direct jobs.

Minister Miruță highlighted that Romania was able to improve the initial terms of the deal, which he described as less favorable when he took office. The renegotiated agreement grants the Romanian state veto rights over major decisions, guarantees the involvement of local suppliers, and lowers licensing costs.

According to the ministry, these changes will save more than EUR 93 million for Romania and ensure a clearly defined state participation in the project.

“This proves that firm and fair negotiations can deliver results, even when others said it was impossible,” Radu Miruță said.

(Photo source: Facebook/Radu Miruțǎ)