Rheinmetall lands €5.7 billion Romanian arms deal, its largest international order ever

German defence contractor Rheinmetall has signed a €5.7 billion package of contracts with the Romanian armed forces, the largest international order in the company's recent history. The deal, announced on Tuesday, was awarded under the European Union's Security Action for Europe (SAFE) programme and covers 298 Lynx combat vehicles, Skyranger air defence systems, medium-calibre ammunition, armoured personnel carriers, two offshore patrol vessels and two diver support ships.

What the package includes

The contracts were signed on Friday, 29 May, according to Rheinmetall. The company described the order as a "significant success" and said it confirms its ambition to be an industrial pillar of European security. Deliveries are scheduled to begin in 2028 and conclude by 2030.

This is a significant success for us. It also confirms our claim to further expand our role as one of the industrial pillars of European security provision.

Production and investment in Romania

Rheinmetall will expand its existing footprint in Romania, where its subsidiary Rheinmetall Automecanica has operated for years from Mediaș. The company plans to invest several hundred million euros and transfer technology to Romanian partners. More than 50 percent of production will take place in Romania or in collaboration with local firms, and over 200 subcontractors will be integrated into the supply network. The project is expected to create thousands of new jobs.

The contract 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.

Financing through the EU's SAFE programme

The entire package is being financed through the EU's Security Action for Europe (SAFE) programme, a €150 billion fund established in May 2025 to strengthen European defence amid the perceived threat from Russia. SAFE provides participating states with favourable loans for weapons procurement and defence-industry development, and also aims to reduce Europe's dependence on the United States in defence matters.

A drone strike hours before the signing

The order was placed on the same Friday that a Russian-made drone struck a residential building in the Romanian city of Galați, near the Ukrainian border, injuring a 14-year-old and a 53-year-old woman. It was the first drone strike on a residential building outside Ukraine since Russia's full-scale invasion began in 2022. Romania's foreign ministry accused Russia of a "serious and irresponsible escalation." According to the Romanian defence ministry, cited by the BBC, fragments of drones have fallen on Romanian territory 47 times over four years of war, 12 of those incidents occurring in 2026 alone.

Serious and irresponsible escalation.

Rheinmetall's broader order book

Rheinmetall had already signalled the Romanian deal in a March 2026 investor presentation, where Romania was listed alongside Ukraine and Italy as key near-term customers. The company expects orders from those three countries totalling around €16 billion. The Düsseldorf-based group, which produces tanks, military trucks, artillery, air-defence systems and ammunition, has been one of the main beneficiaries of the surge in European defence spending following Russia's invasion of Ukraine. In November 2025 it announced construction of a propellant-powder factory in Romania.