The Romanian Ministry of Economy and Romarm, through Bucharest Mechanical Plant, and the American company General Dynamics signed a memorandum of understanding and a cooperation agreement on Tuesday, in the presence of Prime Minister Mihai Tudose. The Memorandum of Understanding sets out the preliminary guidelines for cooperation as well as future actions aimed at establishing a joint venture between Bucharest Mechanical Plant and US General Dynamics Company, which will produce armored vehicles for the Romanian Armed Forces, according to a government press release.

The US company General Dynamics owns the Swiss manufacturer of Mowag armored conveyors.

According to the signed documents, the two parties are committed to collaborate, in accordance with the assumed objectives regarding the endowment of the Romanian Armed Forces, in view of the production and delivery of Piranha 5 armored vehicles to the Ministry of National Defense.

Within the future company, Bucharest Mechanical Plant will participate with assets consisting of manufacturing lines and employees, who will attend training courses at the American company headquarters. General Dynamics will participate in this joint venture with investments in upgrading production capabilities and integrating armored vehicle production.