February 1 (SeeNews) - German arms manufacturer Rheinmetall said on Thursday that it is acquiring a 72.5% stake in Romanian vehicle maker Automecanica Medias, expanding its presence in Central Eastern Europe.
Financial details were not disclosed.
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"The acquisition deepens the Düsseldorf-based technology enterprise’s footprint in Central Europe, opening the door to new customer countries in the region with substantial sales potential," Rheinmetall said.
Automecanica Medias will operate under the name Rheinmetall Automecanica and is expected to generate around 300 million euro ($324.8 million) in annual sales in the medium term. Orders for the current financial year are projected in the three-digit million-euro range, Rheinmetall said in a press release.
The plant in Romania’s central city of Medias will maintain the operational readiness of Western-built combat vehicles in Ukraine assuring logistical support, while forces deployed on NATO’s eastern flank will benefit from shorter response times and more robust supply chains.
Automecanica Medias is a producer of special vehicles, truck build-ons and trailers for the civilian and military markets. The company’s manufacturing expertise will augment and strengthen Rheinmetall’s existing range of military trucks.
In the future, the Automecanica plant is also planned to conduct maintenance and modernisation works on antiaircraft systems belonging to the Romanian military.
Rheinmetall already has locations in two other countries on NATO's eastern flank, Hungary and Lithuania.
In December 2023, Romania signed a 328 million euro deal with Rheinmetall to overhaul the country’s air defence systems.
Rheinmetall and Automecanica have been cooperating since 2022, when the two companies partnered up to operate a maintenance and repair facility in Romania’s northwestern city of Satu Mare.