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.

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