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2024-07-05
Germany Awards £7.3 Bn Ammunition Contract to Rheinmetall
German defence company Rheinmetall has been awarded a significant framework contract by the Bundeswehr (German Armed Forces) to supply 155mm artillery ammunition. The agreement, worth up to £7.3 billion gross, was signed on June 20.
The contract was signed by Annette Lehnigk-Emden, President of the Federal Office of Bundeswehr Equipment, Information Technology and In-Service Support (BAAINBw), and representatives of Rheinmetall in Koblenz.
An existing framework contract has been expanded considerably. The purpose of the order is to replenish the stocks held by the Bundeswehr and its allies, as well as to provide support to the Ukraine in its defence campaign.
The primary purchaser will be the Federal Republic of Germany. The partner countries of the Netherlands, Estonia and Denmark are also participating in the order.
Artillery Factory Readiness
Simultaneously, an initial call-off from the framework contract has been placed to ensure the operational readiness of the new factory under construction in Unterluess, Lower Saxony, Germany.
This initial order includes various versions of 155mm calibre projectiles, with a gross value of approximately €880 million. Deliveries are slated to commence in 2025, with additional call-offs anticipated in the years ahead.
Armin Papperger, Chairman of the Executive Board of Rheinmetall AG, said: “This large-volume framework contract underlines Rheinmetall’s role as an ammunition supplier in Germany. We appreciate the trust that is expressed in this long-term order as part of the security provision of the Federal Republic of Germany and its allies.”
Rheinmetall will establish full artillery ammunition production in Unterluess, Lower Saxony, providing a comprehensive single-source solution: projectiles, fuses, explosive charges, and propellant charges for firing.
Critical Munition Procurements
Artillery remains pivotal in ground operations. Recent conflicts underscore the critical demand for artillery munitions that exceeds current Western production capabilities. Consequently, countries, including Germany, are preparing for significant, sustained procurements.
Rheinmetall, a leader in military equipment and among the top global ammunition manufacturers, has strategically bolstered its production capabilities.
Starting in 2025, Rheinmetall aims to manufacture up to 700,000 artillery shells and 10,000 tonnes of powder across its facilities in Germany, Spain, South Africa, Australia, and Hungary.
The ammunition family offered by Rheinmetall in the artillery sector includes the DM121 explosive projectile, the DM125 smoke projectile and the DM702 SMArt search fuse ammunition (a production with Diehl Defence) as well as the RH68 training projectile and the RH1901 and RH1902 range-optimised smoke projectiles.
Rheinmetall Denel Munition offers a versatile 155mm Assegai artillery ammunition family, including insensitive and high explosive projectiles, smoke, illumination, infrared illumination, and others, effective up to 40 kilometres.
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