Rheinmetall has received a framework contract from the Bundeswehr for the supply of 155-mm artillery ammunition worth up to €8.5 billion.

The company’s press service reported on this.

The contract was signed on June 20, 2024, by the head of the Federal Office of Bundeswehr Equipment, Information Technology and In-Service Support (BAAINBw) and representatives of the company.

The main purpose of the order is to replenish the stocks of the Bundeswehr and its allies, as well as to support Ukraine.

Deliveries are to begin at the start of 2025. The primary purchaser will be the Federal Republic of Germany, which will provide part of the supplies to Ukraine. Additionally, the partner countries of the Netherlands, Estonia and Denmark are also participating in the order.

At the same time, an initial call-off from the framework contract was contracted to ensure the capacity utilisation of the new factory being built in Lower Saxony in Germany during the start-up phase. This order also comprises the delivery of 155mm calibre projectiles in different versions, with a gross order value of around €880m. Deliveries are also scheduled to begin in 2025.

“We are delighted about the largest order in our company’s recent history. 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. We highly appreciate the great trust that is expressed in this long-term order as part of the security provision of the Federal Republic of Germany and its allies,” Armin Papperger, Chairman of the Executive Board of Rheinmetall AG said.

Expansion of ammunition production by Rheinmetall

Militarnyi reported on June 12, 2024, that the German company Rheinmetall is negotiating the establishment of a production line for 155mm artillery shells in Ukraine.

As part of the signed cooperation agreement, the German company may invest significant sums in the development of the Ukrainian defense industry.

In February 2024, the company already announced its intention to produce a six-figure number of 155-mm artillery shells per year in Ukraine. The joint venture will also produce metal charges.

At the beginning of June, it was reported that Rheinmetall is investing more than €180 million to build an ammunition plant in Lithuania.

The project has been granted the status of national importance, and construction is scheduled to begin in October 2024.