In a significant move to bolster Europe’s defense capabilities, NATO member Romania has inked a landmark agreement with German defense giant Rheinmetall to construct a state-of-the-art gunpowder factory in central Romania. The deal, signed on Monday, underscores Romania’s growing role in the region’s defense industry amid escalating tensions with Russia. Prime Minister Ilie Bolojan lauded the joint venture as a testament to Romania’s emergence as a pivotal player in Southeast Europe’s defense sector. The 535 million-euro ($616 million) facility, set to be built in Victoria, Brasov County, is slated to commence construction in 2026 and is expected to take three years to complete. The project is projected to generate approximately 700 local jobs and will be partially financed through the European SAFE mechanism, aimed at enhancing defense readiness. Bolojan emphasized that Romania’s renewed focus on defense is a direct response to the deteriorating security landscape in Eastern Europe. Rheinmetall CEO Armin Papperger highlighted the factory’s strategic importance, noting that the ammunition powder produced there is in high demand globally, particularly in Europe. He also stressed that the initiative positions Romania as a critical component of both the European and NATO defense ecosystems. Since Russia’s full-scale invasion of Ukraine in 2022, Romania has stepped up its contributions to NATO, including donating a Patriot missile system to Ukraine and establishing an international training hub for F-16 pilots from allied nations.
NATO member Romania signs agreement with Germany’s Rheinmetall to build a gunpowder plant
