Bundeswehr places record-breaking order worth history's largest on Rheinmetall
At the Ukrainian front, a persistent issue lies in the scarcity of artillery ammunition for fending off Russian aggressors. Germany's military reserves have taken a hit in recent years. To replenish their stockpiles, the Defense Ministry has entered into a deal worth up to 8.5 billion Euros with Rheinmetall for 155-mm shells.
Rheinmetall, in turn, has placed an order with defense company Rheinmetall for ammunition to the tune of 8.5 billion Euros. The deal, a framework contract for ammo deliveries, has been sealed, as per the firm in Düsseldorf. The order aims primarily to boost the Bundeswehr's arsenal and those of allied nations, and aid Ukraine in its resistance against Russia.
Armin Papperger, Rheinmetall CEO, hailed it as "the largest order in our corporate history." The German administration is holding up its end of the bargain, ensuring the future Rheinmetall plant in Unterlüß, Lower Saxony, stays operational. The initial contract effective since July 2023, with a max value of approximately 1.3 billion Euros, has been expanded by 7.2 billion Euros. The specific number of shells ordered, which travel 40 kilometers and have a 155-millimeter diameter, has not been revealed - estimates are in millions.
The Unterlüß factory will reportedly manufacture the entire artillery ammunition value chain: the projectile, the fuse, the explosive charge, and the propellant that propels the projectile out of the barrel. Production capacity will leap to 100,000 shells per year from the second year, later expanding to 200,000 annually.
Deliveries are anticipated to commence from early 2025, according to Rheinmetall. "Germany will be the primary customer, with some of the shipments earmarked for Ukraine." Besides Germany, the Netherlands, Estonia, and Denmark are also part of the deal. The contract was signed by the Federal Office for Equipment, Information Technology, and In-Service Support (BAAINBw) of the Bundeswehr.
