Rheinmetall expands its footprint in Romania with the acquisition of Damen Shipyards Mangalia

Rheinmetall Real Estate România SRL has acquired Șantierul Naval Damen Shipyards Mangalia for €138,034,320.47, marking a significant step in the company’s expansion within the European defense industry.

The announcement was made on Friday, October 9, and brings the shipyard into the portfolio of a group renowned for its military equipment and security systems. Rheinmetall is already established in Romania through its operations at Rheinmetall Automecanica in Mediaș and the powder factory project in Victoria.

With defense activities representing approximately 80% of its sales, Rheinmetall is a key player in the military sector, producing tanks, military vehicles, artillery systems, air defense systems, and ammunition. In 2024, the group reported sales of €9.75 billion, a remarkable 36% increase compared to 2023.

Rheinmetall has recently signed significant contracts with the Romanian army, totaling €5.7 billion, which is noted as the largest international contract package in the company's recent history. These contracts include the provision of 298 Lynx combat vehicles, cutting-edge air defense systems like Skyranger, and two offshore patrol vessels.

Deliveries for these contracts are slated to begin in 2028 and will be completed by 2030. The company plans to invest hundreds of millions of euros in Romania, creating thousands of new jobs and integrating over 200 subcontractors into its supply chain.

Additionally, Rheinmetall has secured most of its contracts through the Security Action for Europe (SAFE) program, which recently facilitated an agreement for €16.68 billion in loans for Romania to bolster its defense and strategic infrastructure capabilities. This funding represents the second-largest allocation from the European Union under this instrument, following Poland.

Overall, the acquisition of the Mangalia shipyard and the associated contracts signify a promising future for Rheinmetall in Romania, creating opportunities for growth and employment while enhancing the country's defense capabilities.