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German arms company secures multi-million order to supply ammo to Ukraine

Rheinmetall has booked an order to produce 155-mm artillery shells for Ukraine’s and Germany’s Armed Forces.
Ammunition
Ammunition of Ukraine’s Armed Forces. Credit: Ukraine’s General Staff via Facebook.
German arms company secures multi-million order to supply ammo to Ukraine

German arms company Rheinmetall has booked an order for 155-mm artillery ammunition for Ukraine’s and Germany’s Armed Forces following a second call-off under an existing framework order with the German government.

The German government has ordered the company to supply the Armed Forces of Ukraine with tens of thousands of L15 artillery shells and 155-mm Assegai shells for the German Armed Forces.

“The order is worth a figure in the lower three-digit million-euro range. Delivery is scheduled to take place in 2024,” according to Rheinmetall’s statement.

A recently concluded framework agreement for the supply of 155-mm artillery ammunition runs until 2029 and represents a potential order volume of around €1.2 billion. What part of the manufactured ammunition will be delivered to Ukraine and what will be produced to replenish the stocks of the German Armed Forces is unknown.

In July 2023, Rheinmetall announced signing a new framework agreement for artillery ammunition with the German Armed Forces and expanding an existing agreement. The contracts include delivering “several hundred thousand shells, fuses, and propelling charges,” according to Rheinmetall’s statement.

In August, Rheinmetall confirmed its plans to supply Ukraine with a next-generation LUNA-NG air-supported short-range reconnaissance system.

Rheinmetall has also signed a contract to supply SurveilSpire automated intelligence systems to Ukraine. The company also received permission from the German Federal Cartel Office, Bundeskartellamt, to set up a joint venture with the Ukrainian Defense Industry (formerly Ukroboronprom).

The joint venture will focus on maintaining and repairing vehicles transferred to Ukraine from Germany as part of the government’s military aid program. In later phases, the partners intend to jointly manufacture selected Rheinmetall defense products in Ukraine based on a comprehensive technology transfer.

The cooperation could potentially involve the joint development of new military systems between Ukrainian and German engineers for subsequent export by Ukraine. According to Rheinmetall, the deal will benefit Ukraine by promptly delivering military equipment from Germany and establishing defense technology capabilities domestically.

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