Rheinmetall, Romania Launch $616M Gunpowder Factory Creating 700 Jobs

Romania and German arms producer Rheinmetall have signed a landmark agreement to build a major propellant powder factory in Victoria, Brasov County, marking a significant advancement for Romania's defense industry amid rising security concerns in Eastern Europe. The joint venture, valued at over 500 million euros, will create about 700 jobs and aims to produce around 300,000 modular propellant charges annually, with production starting in 2028. Rheinmetall holds a 51% stake in the venture, with Romanian company Pirochim Victoria owning the remainder, and the facility will also produce energy precursors like nitrocellulose locally. This project is part of Rheinmetall's broader strategy to increase propellant powder production to 20,000 tonnes annually by 2030 and to strengthen its presence on NATO's eastern flank. Romanian Prime Minister Ilie Bolojan emphasized the partnership's importance for integrating the defense industry into the national economy and enhancing Romania's role in Southeast Europe's defense sector. The initiative aligns with increased regional demand for arms and reflects a strategic response to Russia's provocations in the region.