The consequences of the war in Ukraine have brought the arms company Rheinmetall the largest order in its company history. The company announced in Düsseldorf on Thursday that it had received a framework contract from the German Armed Forces for artillery ammunition worth up to 8.5 billion euros.
The framework agreement, which has been in place since July 2023, had a maximum value of around 1.3 billion euros, and this contract has now been increased by 7.2 billion euros. The number of projectiles ordered, which can be fired 40 kilometers and have a caliber of 155 millimeters, was not disclosed – it is likely to be several million. Production will take place primarily in Unterlüß in Lower Saxony.
The ammunition is intended to fill the Bundeswehr’s rather empty warehouses, and a large part of the volume is also to go to Ukraine. The country attacked by Russia had already received ammunition deliveries from Germany, and further deliveries are to follow in the future. Deliveries under the current framework agreement are to begin in early 2025; this first tranche is reportedly worth 880 million euros. It is unclear how long the framework agreement will last – the agreement concluded last year had a term of six years. Rheinmetall is Germany’s largest weapons manufacturer, and also produces tanks, military trucks and guns.
