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Rheinmetall received largest order in company history for supply of ammunition, including to Ukraine

The main purpose of the order is to replenish the stocks held by the German army and its allies, as well as to provide support to Ukraine in its defense.
A Ukrainian soldier prepares 155mm artillery shells in his fighting position. Illustrative image, photo via Eastnews.ua.
A Ukrainian soldier prepares 155mm artillery shells in his fighting position. Illustrative image, photo via Eastnews.ua.
Rheinmetall received largest order in company history for supply of ammunition, including to Ukraine

German defense concern Rheinmetall has announced that it has received the largest order in the company’s history for the supply of 155mm artillery ammunition for the German army.

As reported on the company’s website, the main purpose of the order is to replenish the stocks held by the German army and its allies, as well as to provide support to Ukraine in its defense.

The total value of the ammunition contract will be more than 9 billion dollars.

The contract was signed on 20 June by Annette Lenigk-Emden, president of the Bundeswehr’s Federal Office for Equipment, Information Technology and Technical Support (BAAINBw), and representatives of Rheinmetall.

”Deliveries are to begin at the start of 2025. The primary purchaser will be the Federal Republic of Germany, which will provide part of the supplies to Ukraine. Additionally, the partner countries of the Netherlands, Estonia and Denmark are also participating in the order,” the press release states.

Armin Papperger, Chairman of the Executive Board of Rheinmetall AG: “We are delighted about the largest order in our company’s recent history. This large-volume framework contract underlines Rheinmetall’s leading role as an ammunition supplier in Germany and our position as the world’s largest manufacturer of artillery ammunition. We highly appreciate the great trust that is expressed in this long-term order as part of the security provision of the Federal Republic of Germany and its allies.”

Rheinmetall will produce the entire value chain for artillery ammunition in Unterluess, Lower Saxony, in order to be able to offer the “full shot” by a single source: the projectile, the fuse, the explosive charge and the propellant charge that propels the projectile out of the barrel when fired.

An annual capacity of 100,000 projectiles will be achieved on site from the second year of production, increasing up to 200,000.

Lessons from the war

Rheinmetall is a leading manufacturer of military equipment and one of the world’s largest producers of ammunition. The company has recently made considerable investments in its production network. From 2025, Rheinmetall plans to produce up to 700,000 artillery shells and 10,000 tonnes of powder at its sites in Germany, Spain, South Africa, Australia and Hungary.

Artillery is an essential ability in the land dimension. Experience from the war in Ukraine shows the immense demand for artillery ammunition. The production capacity available in the Western world is not designed for these quantities. Germany – like other countries – is therefore planning to procure large quantities over a longer period of time.

Ukroboronprom and Rheinmetall signed a strategic partnership agreement back in May 2023, then in October, the companies formed a joint venture to provide the maintenance and repairs of Western equipment and localize the production of Rheinmetall weapons in Ukraine.

Earlier this year, Rheinmetall CEO Armin Papperger announced that his company plans to established at least four facilities in Ukraine, focusing on the production of shells, military vehicles, gunpowder, and anti-aircraft weapons.

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