The Romanian company ROMARM and the German company Rheinmetall are set to undertake the project of constructing a powder factory in Romania. 

The European Commission has allocated EUR 47 million for this investment under the ASAP initiative (Act in Support of Ammunition Production).

According to the Romanian Minister of Economy, Radu Oprea, the joint factory project is in the preparation stage and German technicians have already arrived in Romania. Further, the Ministry is preparing a bill that would accelerate the process of obtaining permits for the facilities construction for the defence industry.

It is currently unknown where the factory could be located. One possible location is Fagaras, as there were powder production facilities there in the past. EU support is a positive sign in the context of the decline and degradation of powder production facilities in the country after 1990. Romanian media also highlight that the country is currently forced to import powder from Serbia, which has close relations with Russia.

Romanian sources do not specify the total value of the investment or the possible timelines for its completion. 

On Friday, the European Commission decided to allocate 500 million euros to European arms companies to increase artillery ammunition production, which is intended to replenish its own stocks and also be designated for aid to Ukraine.

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