Rheinmetall receives another artillery order worth hundreds-of-millions of dollars
Rheinmetall has received an order for more 155mm shells. (Photo: Rheinmetall)
The latest order is for the delivery of over a hundred thousand 155mm shells from the group’s new Spanish subsidiary Rheinmetall Expal Munitions as well as additional DM 121 high-explosive rounds.
The order is under a framework agreement with the German Armed Force’s signed in July 2023 and the contracts encompass the delivery of several hundred thousand shells, fuses and propelling charges..
Although the customer is the German government, all the ammunition is earmarked for Ukraine. The order is worth a figure in the mid-three-digit million-euro range. Tens of thousands of rounds are to be delivered in 2023, with the reminder due to ship in 2024.
The framework agreement for 155mm artillery ammunition concluded in July runs until 2029 and represents gross potential order volume of around €1.2 billion ($1.27 billion).
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Rheinmetall secures another major contract for artillery ammunition replenishment
Two large call-offs have already been made, the most recent on 6 October and the first for a €127 million ($142 million) contract immediately after the framework agreement was signed.
Also, in July Rheinmetall signed another framework contract to provide 120mm tank munition to a value of €4 billion ($4.2 billion). A first call-off of ammunition worth €309 million ($327 million) came immediately after the signing of the contract.
The flurry of orders and framework agreements with Rheinmetall comes in the face of massive demands for ammunition and shells from Ukrainian forces as they attempt to combat Russian forces which invaded the country in early 2022.
Ammunition for artillery pieces, specifically 155mm rounds, is in high demand worldwide, driven by partners drawing down the stocks to donate to Kyiv while also looking to increase their stockpiles.
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