German defence and automotive company Rheinmetall AG is rapidly expanding its footprint in Romania. The company has taken control of the Romanian firm formerly known as Automecanica Mediaș, rebranding it as Rheinmetall Automecanica SRL. With a 72.5% majority stake, Rheinmetall positions itself as a key partner in Romania’s defence industrial upgrade and NATO’s eastern flank preparedness.
Building Vehicles and Ammunition: A New Romanian Defence Hub
Rheinmetall plans to produce modern military hardware in Romania. The Mediaș facility will manufacture Lynx KF41 infantry fighting vehicles, HX series tactical trucks, and support systems for air defence.
In addition, the company is in advanced talks with state-owned defence groups in Romania to establish joint production of ammunition. Officials expect future output to include shells and explosives meeting NATO standards part of a broader EU defence initiative.
Romania Deepens Defence Industry Cooperation with Germany and EU Backing
Romanian officials and President Nicușor Dan have described the deal as part of a broader strategic partnership with Germany. They highlighted plans under the EU’s Support Act for European Defence Industry to fund joint defence projects like ammunition plants in Brașov.
This aims to reduce dependence on foreign suppliers and provide sustained investment in Romania’s military industry. Mozăna factory investments alone are expected to exceed €400 million, with EU support.
For Romania, the arrival of Rheinmetall presents several benefits. Local jobs will grow in Mediaș and Brașov, expertise in vehicle and ammunition production will deepens, and domestic defence supply chains strengthen.
The plan includes technology transfer, training local staff, and producing a full range of systems from armoured vehicles to support vehicles and ammunition.
Rheinmetall’s Move Marks Long-Term Commitment in Europe
Rheinmetall’s growing presence in Romania reflects its ambition to lead European defence manufacturing. As European countries increase defence budgets and seek supply resilience, companies like Rheinmetall are investing locally to meet demand. The firm has seen strong growth surging revenue, rising share price, and major contracts from NATO nations.
Romania, in turn, gains strategic partners for military modernization and economic growth. The creation of production capacity for armored vehicles and ammunition builds resilience as the country strengthens its role in NATO and EU defense planning. Together, they set a path toward deeper bilateral cooperation and a stronger Eastern European security posture.
