Bundeswehr orders 6500 trucks from Rheinmetall
Rheinmetall has secured another major order from the German military. The defense company is set to deliver 6500 military cargo trucks. The contract, which includes the supply of up to 6500 unarmored transport vehicles worth up to 3.5 billion Euro, was signed, Rheinmetall announced. The budget committee of the German parliament had already released the funds at the end of June. An order for 610 vehicles worth over 300 million Euro was placed immediately, and 250 trucks were expected to be delivered this year.
The lion's share of the financing will come from the 100 billion Euro special fund of the Bundeswehr, which the German government established after the Russian invasion of Ukraine. Rheinmetall will record the contract in the third quarter of the business year 2024. The Bundeswehr has also ordered military cargo trucks from Rheinmetall in the past. The company is also one of the largest munition manufacturers worldwide. The Bundeswehr ordered munition worth around 8.5 billion Euro from the Düsseldorf-based company at the end of June.
The Russian attack on Ukraine brought about a significant economic turnaround for defense companies like Rheinmetall. The industry is needed for the strengthening of the Bundeswehr and the troops of NATO countries and Ukraine.
Rheinmetall is also confident that it can significantly increase production capacity. Capacity has already been increased by a factor of ten in some areas, said CEO Armin Papperger in an interview with ntv. "In the area of artillery ammunition, we will increase it by a factor of twenty by 2026."
Rheinmetall has recently received the largest order in the company's history from the Bundeswehr. A framework agreement for the supply of artillery ammunition worth up to 8.5 billion Euro was concluded. The number of ordered projectiles, which can fly 40 kilometers and have a caliber of 155 millimeters, was not mentioned. It could be several million. "The German industry is very agile," said Papperger and spoke of a "partnership with politics." Rheinmetall has invested 5.6 billion Euro in the past 18 months.
Rheinmetall's significant increase in production capacity has been largely fueled by the economic impact of the Russian attack on Ukraine. This has led to an increase in demand for armor and military cargo trucks, as the strengthening of the Bundeswehr and NATO countries' troops becomes a priority. In response to the Bundeswehr's orders, Rheinmetall will deliver unarmored transport vehicles worth up to 3.5 billion Euro, and they have also secured an order for artillery ammunition worth up to 8.5 billion Euro from Germany.
