German military inks record $9.3B deal for artillery ammunition
The German Bundeswehr announced on Friday that it has signed a contract with the Rheinmetall Group for the supply of artillery ammunition worth up to $9.3 billion. This is the largest contract in the company's recent history.
3:53 PM EDT, June 21, 2024
The contract for the supply of 6.1-inch caliber ammunition with a range of 25 miles was signed on Thursday, Rheinmetall announced. The ordered ammunition is intended to replenish the German armed forces and allied countries' stocks and support Ukraine in its defensive fight against Russia. "The number of rounds ordered was not disclosed, but it is likely to be several million units," writes the portal of the "Bild" daily.
Rheinmetall CEO Armin Papperger emphasized that this is "the largest order in the company's recent history," and the German government is keeping its word by ensuring the utilization of the company's plant capacity, which will be established in Unterlüß, Lower Saxony.
Rheinmetall announced that the delivery of the ammunition will begin at the start of 2025. The primary recipient will be the Federal Republic of Germany, which will allocate part of the deliveries to Ukraine. Partner countries, including the Netherlands, Estonia, and Denmark, are also involved in the order.
Rheinmetall, which also produces tanks, military trucks, and weapons, is Germany's largest arms manufacturer.
German giant opens plant in Ukraine
Last week, Rheinmetall and the state-owned Ukrainian concern Ukroboronprom opened a joint plant in Ukraine. There, armored vehicles will be produced and repaired.
This will accelerate the repair of combat vehicles and their return to the front line and also enable manufacturers from that country to produce new equipment for the Ukrainian army. Ukrainian specialists will perform most of the work in the joint plant, while representatives of the German partner will provide technical supervision.
