Rheinmetall CEO unhappy with pace of construction of ammunition plant in Ukraine and blames bureaucracy

Rheinmetall CEO Armin Papperger said that the pace of construction of the ammunition plant in Ukraine is not progressing as quickly as we would like and blamed Ukrainian bureaucracy for this. He announced this during the presentation of the company's six-month report.

Yes, he said that the company is currently building two plants - a German and a Ukrainian one, and the plant in Germany began to be built almost at the same time as the Ukrainian one. But the German plant is almost ready, while the Ukrainian one is not yet.

"The first contract from the Ukrainian side has been signed. So far, I am dissatisfied with the pace of work, but the reason is not only ours. You know that we are building a new plant - and in Ukraine we started at about the same time as in Germany. In Germany we are already ready, but in Ukraine we are not yet. Unfortunately, the level of bureaucracy in Ukraine is very high, and this does not please me," he said.

He also said that in Ukraine they want to double the capacity of the new plant.

"But there is also a positive: now they want to double the capacity of the first plant. This is good news. Another plus - they are ready to move on and increase production volumes, but now there is a lack of funding," Papperger added.

As the Ukrainian News agency earlier reported, the Rheinmetall ammunition plant in Ukraine, the construction of which was announced in February 2024, will begin operating in 2026.

Also, in early June 2024, a Rheinmetall enterprise for the production and repair of armored vehicles began operating in Ukraine.