BUCHAREST, Nov. 3 (Xinhua) -- The Romanian government and Germany's Rheinmetall AG signed a 500-million-euro (576 million U.S. dollars) deal Monday to build a joint venture producing propellant powders in Victoria, Brasov County, the government said.
The new company, Rheinmetall Victoria SA, will be 51 percent owned by Rheinmetall and 49 percent by state-owned Pirochim Victoria, part of Romarm. The plant will make about 300,000 modular propellant charges a year and create 700 jobs.
Rheinmetall and the joint venture will invest around 400 million euros, while Romania will contribute 120 million euros, including 47 million from the European Union's ASAP ammunition program, Rheinmetall CEO Armin Papperger said at the signing ceremony.
Prime Minister Ilie Bolojan said the project would strengthen Romania's role in Southeastern Europe's defense sector and highlighted plans to integrate local suppliers. He added that Bucharest aims to secure further EU funding under the SAFE program later this month.
Rheinmetall described the Victoria facility as among the world's most advanced plants for double- and triple-base propellant powders, serving both national and European defense supply chains. (1 euro = 1.15 U.S. dollar) ■