Romania has signed a framework agreement with German technology and defence specialist Rheinmetall to build a munitions ignition powder factory for 535 million euros ($626.3 million), the country's industry ministry said on Wednesday.

Rheinmetall AG opened what will be Europe’s biggest ammunition factory after a slight delay as discussions about security guarantees for Ukraine gather steam and Germany sets out to massively expand its military.

Romania reached a framework agreement with German defense and technology company Rheinmetall (OTCPK:RNMBF) (OTCPK:RNMBY) to construct a new ignition powder facility valued at $622 million (€535 million),