Germany’s Rheinmetall scores record-breaking €8.5 billion order for artillery shells

The munitions will replenish Germany's dwindling stocks but many shells will also go to Ukraine.

Ukrainian soldiers fire a Pion artillery system at Russian positions near Bakhmut, Donetsk region, Ukraine, Friday, Dec. 16, 2022. (AP Photo/LIBKOS)
By Dénes Albert
2 Min Read

German defense group Rheinmetall announced on Thursday that it has received the largest order in the company’s history from the German Bundeswehr for 155-mm artillery ammunition.

According to the company’s press service, the total value of the ammunition supply contract is around €8.5 billion. The newly announced agreement replaces a previous contract, signed in July 2023, for a much lower delivery of up to €1.3 billion.

The new agreement does not specify the number of 155-mm projectiles. The ammunition ordered will be produced mainly at Rheinmetall’s new plant in Unterlüss, northern Germany. The group plans to start deliveries in early 2025, with the first tranche worth around €880 million.

The German army will use the order to replenish its own stocks and will also deliver a significant part to Ukraine. The company expects the number of orders to increase further in the coming years.

“This major framework contract underlines Rheinmetall’s leading role as an ammunition supplier in Germany and its position as the world’s largest artillery ammunition manufacturer,” said Rheinmetall CEO Armin Papperger.

At the beginning of June, Rheinmetall announced that it is investing more than €180 million in the construction of an ammunition production plant in Lithuania, the Ukrainska Pravda news portal recalled. Prior to that, the company announced at the end of March that it would receive more than €130 million from the European Union to increase its ammunition production.

Rheinmetall is Germany’s largest arms manufacturer, producing not only ammunition but also tanks, military trucks and weapons. The new order alone is more than the company’s total 2023 sales of €7.17 billion. Due to increased demand since the war in Ukraine, Rheinmetall’s order backlog at the end of last year stood at €38.3 billion.

SOURCES:Magyar Hírlap
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