UK Chancellor commits £2 billion to make the country a “defence industrial superpower”
Rachel Reeves announced port upgrades, protected budgets for innovation and investment in novel technologies.
Rheinmetall buys Expal Systems to expand ammunition production to meet booming orders
Rheinmetall will boost its capability to manufacture 155mm and other other ammunition with its purchase of Expal Systems. (Photo: Rheinmetall)
Rheinmetall has finalised its acquisition of Expal Systems, significantly boosting its ammunition production capacity and strengthening Rheinmetall's position as a NATO supplier and enhancing its product portfolio.
The completion of the acquisition by the German company on 1 August will help it to meet substantial contracts for ammunition that have been placed in the past 18 months as the war in Ukraine has continued.
The buy-out is worth €1.2 billion ($1.1 billion) and, according to the company statement, ‘[will] expand its position as an important supplier for NATO armed forces, systematically increasing its production capacity especially for artillery, mortar and medium calibre ammunition’.
‘[There is] a fast-growing market driven by increased demand for military equipment in countries around the globe and the acquisition provides Rheinmetall with swift access to greater production capacity, covering the entire ammunition production value-added chain, with multiple plants in Spain.’
Related Articles
Rheinmetall expands into Spanish market with Expal acquisition
Germany expands Rheinmetall tank munitions agreement
Rheinmetall secures another major contract for artillery ammunition replenishment
Rheinmetall is a major supplier to the Ukrainian armed forces with large amounts of medium- and large-calibre ammunition, including 20mm automatic cannon rounds for the Marder IFV, and 105mm and 120mm tank ammunition for the Leopard 1 and Leopard 2 MBTs. In addition, a first lot of 35mm ammunition for the Gepard anti-aircraft tank will soon be ready for shipment.
In acquiring Expal, Rheinmetall aims to secure and strengthen its core business in weapons, ammunition and propellants. The current Expal Systems product portfolio encompasses artillery ammunition, mortar and medium-calibre rounds as well as fuses and rocket propulsion systems.
In mid-July Rheinmetall signed a €1.3 billion ($1.4 billion) framework contract with the German Armed Forces to supply several hundred thousand shells, fuses and propelling charges and signed a €127 million ($139 million) contract for a first call of shells with deliveries expected soon.
Shortly before that, it was announced that the German Armed Forces has expanded its framework agreement with Rheinmetall for tank ammunition.
The order includes ammunition for both German and Ukrainian armed forces. Under the agreement the German Army had expanded a deal to provide tank munition to a value of €4 billion ($4.3 billion) and a first call-off of ammunition worth €309 million came immediately after the contract was signed.
You may also like
More from Defence Notes
-
![UK Chancellor commits £2 billion to make the country a “defence industrial superpower”]()
-
![Avalon 2025: Australian defence budget meets the low expectations of show attendees]()
Avalon 2025: Australian defence budget meets the low expectations of show attendees
The Australian Budget was marked by tax cuts and a looming general election which led to little hope that there would be a substantial defence boost even with a big bill for nuclear submarines due.
-
![Launch of Gilat Defense targets DoD market]()
Launch of Gilat Defense targets DoD market
The communications company Gilat launched its new Gilat Defense division at the Satellite 2025 expo, with future solutions aimed at US military customers.
-
![Collins MAPS Gen II to equip US DoD watercraft]()
Collins MAPS Gen II to equip US DoD watercraft
US services have already conducted multiple tests with military maritime systems fitted with the system.
-
![OCCAR expects substantial boost in programme numbers “in the coming months”]()
OCCAR expects substantial boost in programme numbers “in the coming months”
Europe’s Organisation for Joint Armament Cooperation (OCCAR) “has to establish itself…as a centre of excellence for cooperative Defence Equipment Programmes” in the face of growing threats and the need for rearmament, according to the organisation’s chairman.
-
![MBDA CEO emphasises “moment of truth” for Europe as company sees €37 billion backlog]()
MBDA CEO emphasises “moment of truth” for Europe as company sees €37 billion backlog
MBDA CEO Éric Béranger stressed the company’s role supporting European countries with complex weapon systems and focused on boosting production against the backdrop of “shifting” geopolitical alliances.
