The German defense manufacturer Rheinmetall has secured a massive contract package worth €5.7 billion from Romania, marking one of the most significant defense procurement deals in Europe in recent years. According to the company, the agreement includes the production of nearly 300 combat vehicles, air defense systems, ammunition and related components, as well as four naval vessels.
Rheinmetall described the deal as the largest international order in its recent corporate history. The procurement is linked to the European Union’s defense financing initiative Security Action For Europe (SAFE), which aims to strengthen military capabilities across member states in response to growing security concerns in Europe.
Deliveries are scheduled to begin in 2028 and are expected to be completed by 2030. To fulfill the order, Rheinmetall plans to invest several hundred million euros in Romania, significantly expanding its existing industrial footprint in the country. The company stated that it will also ensure technology transfer as part of the program, enabling increased local production and integration into European defense supply chains.
The expansion is projected to create a four-digit number of jobs in Romania, while more than 200 subcontractors are expected to participate in the broader production network. This local industrial development is intended to strengthen Romania’s defense manufacturing capabilities while reducing reliance on external supply chains.
The announcement follows a series of major contracts for Rheinmetall, including a €1.04 billion order from the Bundeswehr at the end of April for advanced infantry equipment systems. That package includes protective gear, uniforms, night vision devices, and specialized digital equipment designed to modernize infantry forces.
Since the beginning of the Russian invasion of Ukraine in 2022, Rheinmetall has steadily expanded its production capacity amid rising European defense spending. The latest Romanian contract underscores a broader shift in European security policy, with governments increasingly investing in domestic and regional arms production and deeper cooperation with Ukraine’s military experience shaping future defense strategies.
