Rheinmetall Wins €142 Million Contract to Supply Artillery Ammunition to Support Ukraine

Rheinmetall Wins €142 Million Contract to Supply Artillery Ammunition to Support Ukraine

(IN BRIEF) Rheinmetall, a Düsseldorf-based tech enterprise, has secured a significant order to provide artillery ammunition in support of Ukraine’s defensive efforts. The contract, valued at approximately €142 million, involves the supply of tens of thousands of 155mm artillery shells, including projectiles, fuses, propellants, and primers. The ammunition will be produced by Rheinmetall Expal Munitions, the company’s recently acquired Spanish subsidiary, and will be delivered in 2025. This order comes in addition to a previous order for around 40,000 rounds scheduled for delivery in 2024. Rheinmetall’s role as a leading global ammunition producer, particularly in large calibers, is emphasized by these contracts. High demand for artillery ammunition, driven by Ukraine’s needs and efforts to replenish ammunition depots in Germany, NATO, and EU countries, has prompted Rheinmetall to increase its production capacity significantly in 2024 across various global plants, with an annual capacity of around 700,000 artillery rounds. The company also holds multiyear framework contracts to supply the German Bundeswehr with artillery ammunition worth over €1 billion.

(PRESS RELEASE) DÜSSELDORF, 5-Dec-2023 — /EuropaWire/ — Rheinmetall has won a large-volume order for supporting Ukraine with artillery ammunition. The Düsseldorf-based tech enterprise has been tasked with supplying Kyiv with artillery rounds worth around €142 million. The order encompasses tens of thousands of complete 155mm artillery shells, including the projectile, fuse (for the explosive charge), propellant and primer (for igniting the propellant). The customer is a NATO partner nation whose declared intention is to support Ukraine in its defensive struggle with effective long-term military aid.

The shells will be produced by Rheinmetall Expal Munitions, the Group’s newly acquired Spanish subsidiary. The current contract highlights Rheinmetall’s role as the world’s largest producer of ammunition, especially in the large calibre domain. The ammunition will be delivered in 2025. Production and delivery of around 40,000 rounds for Ukraine from an earlier order is already due to take place in 2024.

As recently as mid-October 2023, the German government placed an order with Rheinmetall for over 100,000 rounds of 155mm ammunition earmarked for Ukraine – once again from Rheinmetall Expal Munitions – as well as additional DM 121 high explosive shells. The order is worth a figure in the mid-three-digit million-euro range.

Demand for artillery ammunition is currently very high, due not just to Ukraine’s requirements but also the need to replenish the largely empty ammunition depots of Germany and other NATO and EU countries. Rheinmetall plans a massive increase in ammunition production capacity in 2024 at its plants in Germany, Spain, South Africa and Australia, bringing annual output capacity to around 700,000 artillery rounds.

Rheinmetall currently has multiyear framework contracts for supplying the German Bundeswehr with several hundred rounds of artillery ammunition worth over €1 billion.

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SOURCE: RHEINMETALL AG