As part of an effort to expand its operations in Romania and Europe overall, Rheinmetall is acquiring a controlling stake in Romanian vehicle maker Automecanica Mediaș. The announcement follows an earlier December 2023 EUR328 million contract from Romania for air defense systems.
Through Rheinmetall Landsysteme GmbH, the group will acquire a 72.5 percent stake in the company, which will operate in Romania under the name Rheinmetall Automecanica SRL. The remainder of the company will be privately held. The agreement still requires approval by the relevant government authorities before it takes effect.
Rheinmetall anticipates annual sales of the newly acquired company at around EUR300 million and expects incoming orders in the current financial year to be in the three-digit million-euro range.
Automecanica Mediaș is a producer of special vehicles, truck build-ons, and trailers for the civilian and military market. Rheinmetall has been cooperating with Automecanica since 2022, when the two partners joined forces to operate a maintenance and repair facility for military vehicles in Satu Mare, Romania.
“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,” said Rheinmetall chief executive Armin Papperger.
The plant in Mediaș, Romania is poised to play a key role in maintaining the operational readiness of Western-built combat vehicles in Ukraine, as well as assuring logistical support. Rheinmetall’s presence in Romania means that forces deployed on NATO’s eastern flank will be able to count on shorter response times and more direct supply chains.