Romania is moving closer to sealing a multibillion-euro deal with German defense group Rheinmetall to build tanks and other military equipment locally, part of an ambitious effort to modernize its army and strengthen domestic defense production.
Rheinmetall could soon sign an agreement covering Romania’s 8-billion-euro ($9-billion) tank acquisition program, with most manufacturing expected to take place on Romanian soil, according to a report by Economedia.
The talks come just days after Bucharest and the German company signed a separate deal to build a 500-million-euro ($579-million) gunpowder plant in Brașov County. This project may be co-financed through the European Union’s new Security Action for Europe defense initiative.
Rheinmetall CEO Armin Papperger hinted that his company’s cooperation with Bucharest could expand well beyond ammunition, noting that building this “ecosystem and infrastructure” could generate thousands of jobs in Romania.
The second phase of the tank program focuses on ensuring local production and maintenance. Bucharest wants its industry to handle assembly and subsystem manufacturing to reduce dependence on foreign suppliers and develop long-term industrial capacity.
The upcoming tank program represents the largest procurement in Romania’s recent history. Parliament has already approved the army’s request to buy 216 new main battle tanks and 76 support vehicles — in addition to 54 Abrams tanks ordered from the United States in 2023, deliveries of which are expected to begin in 2026.
Expanding Defense Deals in Romania
Romania’s possible cooperation with Rheinmetall marks another step in a fast-paced rearmament effort. Over the years, Bucharest has finalized or advanced several major defense procurements as the war in neighboring Ukraine reshapes regional security priorities.
In late 2023, the government approved the purchase of 32 second-hand F-16s from Norway to supplement the fleet already in service.
Additional units have been arriving this year. Meanwhile, negotiations continue for Romania’s future F-35 program, with officials signaling the intent to join the US-led project before the end of the decade.
Other deals have focused on land and missile defense. The first Patriot air defense systems began arriving earlier this year, while HIMARS rocket launchers from the US are being integrated into the Romanian Armed Forces.
