D&M Holding has reached an agreement with the Ukrainian Defense Industry (UDI) to establish a joint venture (JV) to produce ammunition propellant in the US.
This new US-based entity will focus on manufacturing specialty chemicals required for ammunition production, serving the Ukrainian Defense Forces’ needs.
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This initiative aims to alleviate the shortfall of specialty chemicals, which the “ammunition industry is currently experiencing”, said Ukraine’s largest arms producer UDI.
Ukrainian Defense Industry director general Oleh Huliak said: “We have to gradually move from large-scale procurement to our own production to meet our immediate needs. It is equally important that the company will operate in a safe area. Our cooperation with American arms companies will continue in other areas.”
The formalisation of JV took place at the Ukraine Recovery Conference in Rome.
The new facility will produce single base propellant intended for artillery ammunition such as 155mm shells, which are currently in high demand by Ukraine for its ongoing conflict with Russia.
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By GlobalData“This joint venture continues to build upon and further strengthen the relationship between D&M and Ukrainian state-owned enterprises with projects now in both Ukraine and the US,” D&M CEO Daniel Powers said.
Since February 2022, Ukraine has been substantially dependent on international military support for its defence against Russia.
According to the State Department’s Bureau of Political-Military Affairs Factsheet, as of 12 March 2025, the US has provided Ukraine with $66.9bn in military assistance following Russia’s full-scale incursion on 24 February 2022 and approximately $69.7bn since Russia’s initial invasion of Ukraine in 2014.
In April 2025, the US Army opened a new artillery projectile loading facility. Located in Camden, Arkansas, the facility features two load, assemble, and pack lines that will produce completed high-explosive projectiles at a rate of 50,000 per month when fully operational.
