German military (Bundeswehr) places significant artillery ammunition orders
Up front in Ukraine, a constant issue is the scarcity of artillery shells for defending against Russian aggressors. Germany's military reserves have taken quite a hit over the past few years. The Defense Ministry is now splurging on 155-mm shells from Rheinmetall, costing up to an astounding 8.5 billion Euro.
According to Rheinmetall HQ in Düsseldorf, a broad agreement for shell delivery has been signed with the Ministry. This order aims mainly to boost the Bundeswehr's arsenal and those of allied nations, plus offering a helping hand to Ukraine in their battle against Russia.
Armin Papperger, Rheinmetall's CEO, touted this as "the biggest order in our young corporate history." The German government is sticking to its commitment, ensuring Rheinmetall's upcoming factory in Unterlüß, Lower Saxony, remains operational. This contract, effective since July 2023, had an initial cap of around 1.3 billion Euro, but it's now ballooned by a whopping 7.2 billion Euro. The exact number of shells ordered, capable of flying 40 kilometers with a 155mm diameter, wasn't disclosed – could be millions upon millions.
Rheinmetall plans to develop the entire artillery shell production chain at the location: shell, fuse, explosive charge, and propellant. Production capacity will reach 100,000 shells per year from the second year of production, later escalating to 200,000 per year.
Deliveries are scheduled to commence from early 2025, according to Rheinmetall. "Germany will be the principal customer, who will then share some of the deliveries with Ukraine." Besides Germany, the Netherlands, Estonia, and Denmark are equally involved in the deal. The agreement was solidified by the Federal Office for Equipment, Intelligence, and In-Service Support (BAAINBw) of the Bundeswehr.
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