Military systems and equipment manufacturer Rheinmetall announced on February 1 the acquisition of a majority stake (72.5%) in Romanian vehicle manufacturer Automecanica Mediaș, bne IntelliNews reported.
Rheinmetall, producer of the Leopard main battle tanks, operates in two other countries on NATO’s eastern flank, Hungary and Lithuania. The company’s CEO Armin Papperger declared:
“Bringing Automecanica Mediaș into the Rheinmetall family marks another important milestone in our strategy of strengthening the group’s presence in Central Europe, which in turn contributes to bolstering the defensive capabilities of the EU and NATO on Europe’s eastern flank.”
However, the deal still requires approval from the relevant government authorities before taking effect, after which the Romanian plant will operate under the name Rheinmetall Automecanica.
The German company’s presence in Romania will accelerate the response time of NATO forces on the eastern flank, as well as ensure more reliable supply chains, the company explains. Moreover, the acquired plant in Mediaș is expected to play a pivotal role in maintaining the operational readiness of Western-made combat vehicles in Ukraine.
Automecanica Mediaș specialises on the production of truck build-ons and trailers for the civilian and military market. The company has been working with Rheinmetall since 2022, when the two partners joined forces to operate a military vehicle maintenance and repair facility in Satu Mare, Romania.
Incoming contracts in the current financial year are expected to amount to hundreds of millions of euros. Rheinmetall forecasts that Automecanica’s sales will potentially climb from €76 million in 2022 to €300 million in the medium term.
