German gunsmiths and the Ukrainian defense industry: Multiple German companies are planning to increase their investment in Ukraine-based production capacities.

Rheinmetall CEO Armin Papperger gave his assurance that he will not abandon plans to invest in Ukraine, even if the war ends this year, and will build a total of three factories. The first Rheinmetall plant to begin Ukrainian operations is an equipment repair facility, and an ammunition production facility is under construction, set to launch in 2026. The third plant will likely produce anti-aircraft systems.

Meanwhile, German company Hensoldt and the Ministry of Strategic Industries discussed the potential for deploying defense production in Ukraine. Hensoldt manufactures radar systems that are supplied to the Armed Forces of Ukraine using funds supplied by the German government.

In addition, German drone manufacturer Quantum Systems plans to double its production in Ukraine this year. The company has currently opened two facilities in Ukraine, an R&D center and a UAV maintenance and development facility.

German defense firm Helsing GmbH, which has an order to produce 6,000 AI-enabled strike drones for Ukraine, has agreed with the Ministry of Strategic Industry to enhance collaboration to integrate AI technologies into Ukrainian developments.