Bundeswehr awards record €8.5 billion ammunition order to Rheinmetall: In a landmark deal, German defense company Rheinmetall has secured the largest order in its history – a $9.6 billon (€8.5 billion) framework contract to supply the Bundeswehr (German Armed Forces) with 155mm artillery ammunition. Signed on June 20th, 2024, the agreement significantly expands upon an existing framework and aims to replenish ammunition stocks for Germany, its allies, and Ukraine’s ongoing defense efforts.
Deliveries are slated to begin in early 2025, with Germany acting as the primary purchaser. The contract includes provisions for supplying partner nations like the Netherlands, Estonia, and Denmark.
Securing Ammunition Supplies
This substantial order comes amidst a backdrop of heightened geopolitical tensions and the ongoing war in Ukraine. The conflict has highlighted the critical role of artillery and the urgent need to replenish depleted stockpiles across Western nations.
To ensure smooth production ramp-up and meet anticipated demand, Rheinmetall has secured an initial call-off from the framework contract. This initial order, valued at €880 million, will see the company deliver various 155mm caliber projectiles starting in 2025.
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“We are delighted about the largest order in our company’s recent history,” said Armin Papperger, Chairman of the Executive Board of Rheinmetall AG. “This large-volume framework contract underlines Rheinmetall’s leading role as an ammunition supplier in Germany and our position as the world’s largest manufacturer of artillery ammunition.”
Papperger further emphasized the trust placed in Rheinmetall by the German government, highlighting its role in bolstering national and allied security.
Bundeswehr-Rheinmetall contract signed in Koblenz, Germany.
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New Production Facility to Meet Growing Needs
To fulfill the demands of this large-scale contract and cater to future requirements, Rheinmetall is constructing a new production facility in Unterluess, Lower Saxony. This facility will be a one-stop shop for “full shot” production, encompassing projectiles, fuses, explosive charges, and propellant charges – all crucial components of artillery ammunition.
The new facility is projected to reach an annual production capacity of 100,000 projectiles by its second year of operation, scaling up to 200,000 units annually.
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Annette Lehnigk Emden, President, BAAINBw at the signing ceremony.
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Rheinmetall’s Commitment to Ammunition Production
This significant contract reinforces Rheinmetall’s position as a leading manufacturer of military equipment and a global leader in ammunition production.
The company has invested heavily in expanding its production network across its various facilities in Germany, Spain, South Africa, Australia, and Hungary. By 2025, Rheinmetall expects to produce a staggering 700,000 artillery shells and 10,000 tonnes of powder annually.
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The company boasts a diverse portfolio of artillery ammunition, including explosive projectiles, smoke projectiles, search fuse ammunition, training projectiles, and range-optimized smoke projectiles. Additionally, Rheinmetall Denel Munition‘s Assegai artillery ammunition family offers a range of insensitive ammunition, high-explosive projectiles, smoke, illumination, and other specialized rounds, all capable of reaching a range of approximately 40 kilometers.
This €8.5 billion contract signifies a pivotal moment for Rheinmetall, solidifying its position as a key supplier in Europe’s evolving defense landscape. The new production facility in Unterluess will play a critical role in meeting the ammunition needs of Germany, its allies, and potentially other nations facing modern warfare challenges.
