Rheinmetall receives largest ammunition order in its history, including aid for Ukraine

Rheinmetall, a German defence concern, has said that it has received the largest order in its history for the delivery of 155-mm artillery ammunition to the Bundeswehr.

Source: press service of Rheinmetall, as reported by European Pravda 

Details: The contract for the supply of ammunition will be worth approximately €8.5 billion.

The contract was signed on June 20 by Annette Lehnigk-Emden, President of the Federal Office of Bundeswehr Equipment, Information Technology and In-Service Support (BAAINBw), and Rheinmetall representatives.

The existing framework contract has undergone major expansion. The order's primary goal is to refill the arsenal of the Bundeswehr and its allies while also providing support to Ukraine.

Deliveries should start in early 2025. Germany will be the primary customer, supplying a portion of Ukraine's needs.

In addition, the order includes three partner countries: the Netherlands, Estonia and Denmark.

At the same time, an initial agreement was reached to diverge from the framework contract in order to ensure full capacity utilisation of the new factory under construction in Unterluess, Germany, during the launch stage.

This deal also involves the provision of 155-mm calibre shells in various variations, for a total cost of around €880 million. Deliveries have also been scheduled for 2025.

The company expects that the quantity of orders will increase in the coming years.

"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," said Armin Papperger, Chairman of the Executive Board of Rheinmetall.

Rheinmetall is investing more than €180 million in the construction of an ammunition production plant in Lithuania.

Prior to that, the company received a large order for artillery ammunition from a NATO member country, worth almost €300 million.

At the same time, German armament concern Rheinmetall revealed that it will receive more than €130 million from the European Union to increase ammunition production.

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