Important progress on strategic bottleneck

Armin Papperger, CEO of Rheinmetall AG, said: “Propellant powder remains a strategic bottleneck within the defence industry. The new production facility in Romania is another step towards our goal of achieving an annual production capacity of 20,000 tonnes of propellant powder by 2030.”

The total investment in the planned powder plant exceeds €500 million. Rheinmetall holds a 51% stake in the joint venture, with Pirochim Victoria holding the remaining 49%.

The production plant is to be built in Victoria, Brasov County. The joint venture is expected to create around 700 jobs. The expected annual production capacity is around 300,000 modular propellant charges, requiring approximately 750 tonnes of powder. Additionally, 200 tonnes of propellant powder will be produced to meet local demand.

Energy precursors such as nitrocellulose will also be produced locally. According to the current plans, the production of propellant powder and modular propellant charges is scheduled to begin in 2028.

With this investment, Rheinmetall and Romania are establishing the strategically important production of propellant powder within the country. At the same time, the corporation will bolster its presence on NATO’s eastern flank. Romania, in turn, will be creating sustainable added value in its own country.