DUESSELDORF (dpa-AFX) - Rheinmetall AG (RNMBF.PK), a German aerospace and defense company, Thursday announced that it has bought 72.5 percent share in Romanian vehicle maker Automecanica Media, furthering its footprint in Central Europe.
With this, Rheinmetal also intends to expand its production and maintenance capacity by adding military vehicles to its current portfolio.
Its presence in Romania is expected to provide shorter response times and more robust supply chains to the forced deployed in NATO's eastern flank.
The financial details of the transaction are not yet known.
Through Rheinmetall Landsysteme GmbH, the company will hold a majority stake in the Romanian company and operate as Rheinmetall Automecanica SRL. The remaining shares of Automecanica Medias will remain in private hands.
Automecanica Medias is a maker of special vehicles, truck build-ons and trailers for the civilian and military market. The plant in Romania is poised to play a key role in maintaining the operational readiness of Western-built combat vehicles in Ukraine, as well as assuring logistical support.
Currently, Rheinmetall shares are trading at EUR 326.80, up 0.62% in Germany.
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