Bundeswehr orders 6500 trucks from Rheinmetall
Rheinmetall has drawn another major order from the German military. The defense company is set to deliver 6500 military cargo trucks. The contract is worth up to 3.5 billion Euro. The lion's share will be financed through the Bundeswehr's special fund.
Rheinmetall announced that it had received a record order from the German military for the delivery of 6500 so-called unarmored transport vehicles (UTF), worth up to 3.5 billion Euro. A framework contract, which provides for the delivery of up to 6500 unarmored transport vehicles, was signed, according to Rheinmetall. The Budget Committee of the German Parliament had already released the funds at the end of June. 610 vehicles worth over 300 million Euro were ordered immediately, and 250 trucks were to be delivered this year.
The lion's share will be financed through 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 2024 business year. The Bundeswehr has also ordered military cargo trucks from Rheinmetall in the past. The company is also one of the world's largest munition manufacturers. 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 contractors 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 tenfold in some areas, said CEO Armin Papperger in an interview with ntv. "In the area of artillery ammunition, we will increase it twentyfold by 2026."
Rheinmetall has recently received the largest order in the company's history. With the Bundeswehr, a framework contract for the delivery of artillery ammunition worth up to 8.5 billion Euro was agreed upon. 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.
- Despite the Russian attack on Ukraine leading to a significant economic boost for defense contractors like Rheinmetall, the company is also contributing to the reinforcement of the Bundeswehr's economy by delivering 6500 military cargo trucks, with the majority of the funds sourced from the Bundeswehr's 100 billion Euro special fund.
- In response to the heightened tension and the need for defense equipment due to the Attack on Ukraine, Rheinmetall, a prominent armor manufacturer, has announced record orders from the German military, not only for military cargo trucks but also for artillery ammunition worth up to 8.5 billion Euro, which will significantly increase their production capacity.
