Rheinmetall takes a 72.5% stake in Automecanica Mediaş from Romania, the German defense industry group estimating that it will have an annual sales potential of up to 300 million euros. The rest of the company’s shares will remain in private ownership.
Following the takeover, the Romanian company will be called Rheinmetall Automecanica and will be part of the global production network of the German group.
“Continuing to expand its presence in Romania as a leading manufacturer of military vehicles, Rheinmetall takes a majority stake in the Romanian vehicle manufacturer Automecanica Mediaş. The acquisition expands the Düsseldorf-based technology company’s footprint in Central Europe, opening the door to new customer countries in the region, with substantial sales potential,” says a statement from Rheinmetall.
The contractual agreement still requires the approval of the relevant government authorities before entering into force, the statement said.
In the medium term, Rheinmetall estimates the annual sales potential of the newly acquired company at approximately 300 million euros and expects the value of orders received in the current financial year to be in the three-digit million euro range.
According to Rheinmetall’s general manager, Armin Papperger, “Bringing Automecanica Mediaş 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 the eastern 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. We want to respond in the best possible way to the expectations of Romania’s politicians and military.”
Automecanica Mediaş is a manufacturer with a long history of producing special vehicles, truck accessories and trailers for the civil and military market. Rheinmetall has been cooperating with Automecanica since 2022, when the two partners joined forces to operate a military vehicle maintenance and repair facility in Satu Mare, Romania.
Rheinmetall is already present in two other countries on the eastern flank of NATO, Hungary and Lithuania. Moreover, in December 2023, Romania awarded Rheinmetall a major air defense order, worth 328 million euros.
The Mediaş plant is poised to play a key role in maintaining the operational readiness of Western-built combat vehicles for Ukraine, as well as providing logistical support. Rheinmetall’s presence in Romania means that forces deployed on NATO’s eastern flank will be able to count on shorter response times and more solid supply chains.
If this is the case, then why is Romania buying the American Abraham tanks which are expensive? Caution here. Anyway… bring the Aro back.