German defense company Rheinmetall is set to build a munition powder factory in Victoria, Brașov County, in partnership with the Romanian state. The total investment amounts to €500 million, and the project is expected to generate around 700 new jobs.

The facility will be constructed from the ground up and is planned to produce approximately 60,000 charges and 300,000 modular charges annually, positioning it among the largest global production capacities for artillery systems. In addition, it will manufacture 200 tonnes of munition powders, primarily for 120 mm and medium calibres. Construction is scheduled to begin in 2026, with production deliveries expected two years later.

Romania’s Minister of Economy, Digitalization, Entrepreneurship and Tourism, Radu Miruță, announced that the agreement with Rheinmetall had been renegotiated in Romania’s favour, with the support of the Presidential Administration and the Prime Minister. As a result, Romania secured additional benefits worth over €93 million. These include a 50% share of a €47 million EU funding allocation—initially assigned entirely to Rheinmetall. The license fee was also reduced from 8% to 6%, and the annual rent for the platform provided by Romania was increased from €6 million to €9 million.

Miruță emphasized that, beyond financial improvements, a local supply chain clause was introduced to ensure Romanian companies would be involved in the project. He stated that the national defense industry must be reactivated through such strategic investments that support economic growth across the entire supply chain. Holding 49% of the joint venture, Romania will also have veto power over major decisions such as loans, sales, or share transfers.

This investment is part of Romania’s broader involvement in the EU’s SAFE mechanism – Security Action for Europe – under which the country is expected to receive €16.68 billion. The list of eligible projects must be submitted to the European Commission by November 29, following approval by Romania’s Supreme Council of National Defense.

Rheinmetall CEO Armin Papperger stated that Rheinmetall-Victoria SA will become the most modern company in the world in the production of double and triple base munition powders, which are essential to supporting defense forces across Europe, including in Romania.