Romania strikes major €5.7B deal with Rheinmetall for defense systems and naval vessels

June 3, 2026, by Fatima Bahtić

Romania has awarded a contract package to Düsseldorf-based technology group Rheinmetall to carry out extensive defense projects.

As informed, the contract was signed on May 29 by the Directorate General for Armaments and falls under the European Union’s Security Action for Europe (SAFE) program.

The contracts for the manufacture of combat vehicles, air defense systems, ammunition and ammunition components and naval vessels have a total value of €5.7 billion.

Specifically, the projects include:

298 Lynx vehicles, a latest-generation family of combat vehicles. The majority will be armoured personnel carriers, along with mortar carrier, command post and medical variants;
Skyranger air defence systems, also based on the Lynx. Until these are introduced, Rheinmetall will keep the Gepard anti-aircraft gun armoured vehicles currently in use operational;
medium-calibre ammunition for air defence and armoured personnel carriers;
two offshore patrol vessels;
and two diver support vessels.

According to Rheinmetall, all vessels are based on the design of the new Naval Systems segment.

To fulfil the orders, Rheinmetall will significantly expand its existing capacities in Romania, which have been in place for many years, and will also ensure technology transfer. A large proportion of the value added will be generated in this NATO and EU member state. Deliveries are scheduled to begin 2028 and be completed by 2030.

“The contract concluded between the Romanian authorities and Rheinmetall represents not only an opportunity to modernise Romania’s defence capabilities, but also an important step towards revitalising the national defence industry, as over 50% of production will take place in Romania or in collaboration with local companies. It marks the beginning of a new phase of industrial development that has the potential to become a key driver of Romania’s economic growth and the integration of local industry into the European ecosystem over the next decade,” Mihai Jurca, Head of the Prime Minister’s Office and Coordinator of the inter-institutional working group on the implementation of the SAFE Plan, said.

“This is a significant success for us. We are grateful for the trust that Romania has placed in us regarding the equipping and modernisation of its armed forces,” said Armin Papperger, CEO of Rheinmetall AG.

“Together with our Romanian partners, we will establish a far-reaching defence ecosystem here. This also confirms our ambition to further expand our role as one of the industrial pillars of European security.”