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Rheinmetall enters USD9.1 billion 155 mm shell contract for Bundeswehr and Ukraine

155 mm artillery shells pictured at a Rheinmetall facility in Unterlüss, Germany, in 2024. (Rheinmetall)

In the largest order in the company's history, Rheinmetall has signed a framework contract for 155 mm artillery ammunition with a total gross value of EUR8.5 billion (USD9.1 billion).

The contract, signed on 20 June between the Federal Office of Bundeswehr Equipment, Information Technology and In-Service Support (Bundesamt für Ausrüstung, Informationstechnik und Nutzung der Bundeswehr: BAAINBw) and Rheinmetall, holds that the primary purchaser is the Federal Republic of Germany. Denmark, Estonia, and the Netherlands are also participating in the order.

Deliveries of the shells are due to begin at the start of 2025, with the company saying they are intended to “replenish the stocks held by the Bundeswehr and its allies, as well as to provide support to Ukraine in its defence campaign”.

The German government will provide part of the ammunition to Ukraine, although a spokesperson for the BAAINBw did not confirm to Janes when they planned on sending the first shells to Ukraine or how much of the order they would amount to.

The Chairman of Rheinmetall's Executive Board, Armin Papperger, said the order underlines the company's position as the world's largest manufacturer of artillery ammunition.

He also referenced a call-off in the contract to ensure that a new factory Rheinmetall is building in Lower Saxony in Germany – to supply the German armed forces with ammunition – would be used during its start-up phase. The Unterlüss plant is expected to reach an annual capacity of 100,000 projectiles from the second year of production, increasing up to 200,000 a year.

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