(MENAFN- UkrinForm) According to Ukrinform, AP reported the news.

Following the signing ceremony, Prime Minister Ilie Bolojan hailed the joint venture between Romania and Rheinmetall as a sign that the country is“emerging as a player with potential in the defense industry of Southeast Europe.”

The €535 million facility will be built in the city of Victoria, with construction expected to begin in 2026 and continue for three years, creating approximately 700 jobs.

Bolojan noted that Romania would seek to finance part of its contribution through the European SAFE mechanism designed to strengthen defense capabilities.

“After many years in which our defense industry was in little demand, Romania is entering a new stage because of the security situation in Eastern Europe. I'm glad Rheinmetall sees us as an important and serious partner and is strengthening its presence in Romania,” he stated.

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Rheinmetall AG CEO Armin Papperger emphasized that the gunpowder for ammunition produced at the plant“is needed worldwide and especially in Europe,” and that the project will make Romania a key player in the continent's defense ecosystem.

“The strategy is to make Romania an integral part of the European ecosystem. Romania will also be an integral part of the NATO ecosystem,” Papperger added.

As reported by Ukrinform, Bulgaria and the European defense giant Rheinmetall signed a separate agreement on Tuesday worth over €1 billion to build a plant in Bulgaria that will produce gunpowder and 155mm artillery shells.

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