German Bundeswehr Expands Framework Agreement with Rheinmetall for Tank Ammunition Supply

German Bundeswehr Expands Framework Agreement with Rheinmetall for Tank Ammunition Supply

(IN BRIEF) The German Bundeswehr has increased its existing framework agreement with Rheinmetall to €4 billion for the supply of tank ammunition. Rheinmetall has emerged as a major supplier of 120mm tank ammunition to the German armed forces, highlighting its role in rebuilding military capabilities and augmenting ammunition stocks due to the evolving security situation. The expanded agreement includes a substantial quantity of tank ammunition for the Ukrainian armed forces as well. The initial call-off after signing the contract amounts to approximately €309 million for several hundred thousand rounds of 120mm x 570 cal. service and practice ammunition, used by Leopard 2 main battle tanks. The order encompasses multipurpose ammunition with programmable and non-programmable fuses, as well as practice ammunition for training purposes. Rheinmetall’s reputation as a reliable ammunition supplier for Leopard 2 users strengthens the Bundeswehr’s long-term ammunition planning and logistical advantages. The framework agreement ensures steady ammunition supply and guarantees Rheinmetall solid utilization of tank ammunition capacity in the coming years.

(PRESS RELEASE) DÜSSELDORF, 14-Jul-2023 — /EuropaWire/ — The German Bundeswehr has expanded to €4 billion an existing framework agreement with Rheinmetall for the supply of tank ammunition. The order underscores Rheinmetall’s role as a major supplier of 120mm tank ammunition to the German armed forces. It also reflects the German military’s commitment to rebuilding its capabilities and increasing its ammunition stocks due to the new security situation. The framework agreement also encompasses a significant amount of tank ammunition for the Ukrainian armed forces.

Based on the framework agreement just signed, the Bundeswehr could procure several hundred thousand rounds of 120mm x 570 cal. service and practice ammunition, the type fired for example by the Leopard 2 main battle tank. Worth around €309 million, a first call-off of ammunition came immediately after the contract was signed.

The scope of delivery includes multipurpose tank ammunition with a non-programmable fuse as well as another variant that can be programmed for three different ignition modes: detonation on impact with and without time delay, and a timed airburst function. The order also encompasses various types of practice ammunition featuring reduced range and lower cost, but which otherwise display comparable ballistic characteristics.

For many Leopard 2 user nations, Rheinmetall is the most important supplier of ammunition for the tank’s 120mm smoothbore main armament.  The armed forces of Germany and several partner nations have entered framework contracts with Rheinmetall to secure a steady long-term supply of ammunition, which in turn enables better planning of the production process and optimum utilization of existing capacity. Owing to ongoing production of various types of ammunition during the lifetime of the contract and the resulting rapid availability, the framework contract offers clear logistical advantages.  For Rheinmetall, this contractual arrangement assures solid utilization of tank ammunition capacity for years to come.

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SOURCE: RHEINMETALL AG