According to a report by the Handelsblatt daily on Friday, German arms maker Rheinmetall has established a joint venture with Ukrainian state-owned conglomerate Ukroboronprom.
The JV will be focused on the construction, maintenance and repair of armored vehicles in Ukraine, Handelsblatt reported.
The German company will have a majority stake of 51% in the joint venture and will provide the management.
“Ukraine will benefit from a comprehensive technology transfer as well as a short-term supply of military equipment from Germany,” Rheinmetall’s Chief Executive Officer Armin Papperger told Handelsblatt.
The company also expects to ink contracts for two more joint ventures soon – for ammunition and for air defense, the Handelsblatt daily reported.
Germany’s Rheinmetall has taken advantage of a surge in defense spending since Russia’s incursion into Ukraine in February last year.
The shares of Rheinmetall AG (RHMG) closed 2.89% (EUR 7.500) higher at EUR 266.800 on Xetra on Friday, while snapping a four-day streak of losses.
The company’s total market cap now stands at EUR 11.757 billion.
The shares of Rheinmetall AG went up 123.99% in 2022, compared with a 12.35% loss for the benchmark index, DAX (GDAXI).
The shares have risen another 43.40% so far this year.
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