Romania secures €535 million defence deal for new munitions factory

Business Forum

28 August, 2025 at 11:05 AM

Romania has finalised a landmark contractual framework with German defence giant Rheinmetall for the construction of a new ammunition powder factory in Victoria, Brașov County.

The strategic investment, valued at €535 million, will see the facility built from the ground up to supply both the country's domestic defence needs and the entire region.

Radu Miruță, Minister of Economy, said: "Today, we have shown that if you negotiate fairly and firmly, you can change even what others said was impossible."

The agreement was signed by Romanian Economy Minister Radu Miruță and Rheinmetall CEO Armin Papperger in a ceremony attended by top officials, including NATO Secretary General Mark Rutte, German Defence Minister Boris Pistorius, and Bulgarian President Rumen Radev.

The project, which will create 700 direct jobs, is slated to begin construction in 2026 and is expected to take three years to complete.

Through recent negotiations, the Romanian government secured significant concessions, including veto rights over major decisions, mandatory involvement of Romanian suppliers, fair licensing costs, and a clearly quantified stake for the Romanian state.

These renegotiations resulted in savings of over €93 million for the state.

Over 27% of Romanians interested in buying heat pumps

Although heat pump technology for heating and cooling is increasingly present in public discussions, the actual level of knowledge and usage remains low in Romania, according to research conducted for the despre-energie.ro platform, a project by E.ON and Delgaz Grid companies.

Energy

Rețele Electrice Romania launches €40 million grid upgrade

Rețele Electrice Romania, part of the PPC group, has launched a procurement procedure for modernising medium and low voltage networks in Bocșa, Caraș-Severin county. The project, worth over RON 198 million (€40 million) excluding VAT, will benefit approximately 17,000 inhabitants and is co-financed through the Modernisation Fund.

Agriculture

Grup Șerban opens €11.5 million poultry farm

Grup Șerban Holding has inaugurated the Moldavia Poultry Farm, an €11.5 million investment located on European Road E85 in Orbeni commune, Bacău County. 

Finance

Cris-Tim starts trading on BVB

Cris-Tim Family Holding debuted today on the Bucharest Stock Exchange's (BVB) under ticker CFH, becoming the first food industry company listed on Romania's main market. The company completed an IPO worth €89.3 million in late October.

Real estate

Bucharest premium property prices double amid supply shortage

The premium residential market in Bucharest has experienced a price surge over the last few years, reaching record levels, particularly in sought-after areas such as Primăverii, Kiseleff, Aviatorilor, and Dorobanti. This trend results from a combination of factors influencing both supply and demand within this niche segment, according to an analysis by Cushman & Wakefield Echinox.