German armaments maker Rheinmetall has landed the largest order in the company’s history, a framework deal to supply the German military with up to €8.5 billion ($9.1 billion) in artillery ammunition.
The deal, announced on Thursday, replaces a previous framework agreement signed in July 2023 that had a much lower maximum value of €1.3 billion.
The agreement does not specify the number of 155 millimetre shells, but the total will likely run into the millions.
Production of the artillery shells primarily takes place at Rheinmetall’s factory in the town of Unterlüss in northern Germany.
The ammunition is intended to fill the Bundeswehr’s depleted stocks, and a large proportion of the volume is also to go to Ukraine.
Ukrainian forces have already received deliveries of ammunition from Germany, and further deliveries are to follow in the future to supply the country’s fight against the Russian invasion.
Deliveries under the new framework agreement are to begin at the start of 2025, with the first tranche reportedly worth €880 million.
It is unclear how long the framework agreement will be valid for – the agreement concluded last year had a term of six years.
Rheinmetall is Germany’s largest arms manufacturer and also produces tanks, military trucks and guns.
Source Agencies
