Aerospace & Defence Germany Romania Ukraine

Rheinmetall expands CEE presence with majority purchase of Automecanica Medias

| 2024-02-03 2 min read

Rheinmetall expands CEE presence with majority purchase of Automecanica Medias

Reading Time: 2 minutes

German defence industry group Rheinmetall has acquired a 72.5% stake in Automecanica Medias from Romania, estimating that it will have an annual sales potential of up to EUR 300mn. The rest of the company’s shares will remain in private ownership. The contract still requires approval from the relevant government authorities. 

Following the takeover, the Romanian company will be renamed Rheinmetall Automecanica and join the leading manufacturer of military vehicles’ global production network, according to local media. In addition to expanding the group’s production and maintenance capacity, the acquisition also enlarges Rheinmetall’s military vehicle portfolio. 

The plant in Medias, central Romania, will now play a key role in maintaining the operational readiness of Western-built combat vehicles for Ukraine, and offer logistical support, leading to shorter response times and more reliable supply chains. It will also maintain Romanian army anti-aircraft systems.

Romania becomes Rheinmetall’s fourth CEE country

The acquisition expands the Dusseldorf-based technology company’s footprint in Central Europe, a statement from Rheinmetall said. Rheinmetall is already present in Central and Eastern Europe (CEE) countries Hungary, Lithuania and Austria. 

Rheinmetall estimates the annual sales potential of the company at approximately EUR 300mn and anticipates orders in the current financial year will exceed EUR 100mn. Rheinmetall AG had sales of EUR 6.4bn in 2022, and has a global payroll of some 34,000 employees in 139 locations.

Rheinmetall General Manager Armin Papperger said “Bringing Automecanica Medias into the Rheinmetall family marks another important stage in our strategy to strengthen the group’s presence in Central Europe, which, in turn, contributes to strengthening the defensive capabilities of the EU and NATO on its Eastern European flank. 

“We look forward to supporting Romania in future projects in the field of vehicles, as well as with other Rheinmetall technologies. Here, the inclusion of local partners and the strengthening of the Romanian economy are matters of central interest to us,” he added. 

Rheinmetall has been cooperating with Automecanica since 2022, when they joined forces to operate a military vehicle maintenance and repair facility in Satu Mare, central Romania. Automecanica was founded in 1941 as the State Workshops for Aeronautica Medias, switched to producing lifting platforms and vehicle accessories in 1962, and now has a product portfolio that includes street-cleaning machines and construction vehicles.