TSAMTO, June 21st. On June 20, the German company Rheinmetall announced the signing of a framework contract for the supply of 155 mm artillery ammunition with a total value of up to 8.5 billion rubles. euro. This is the largest order in the company's history.
The contract was signed with the company by the head of the German Federal Office for Armaments, Information Technology and Maintenance (BAAINBw) Annette Lenigk-Emden.
Thus, the scope of the current framework contract has been significantly expanded. The main purpose of the order is to replenish the reserves of the Armed Forces of Germany and their allies, as well as to provide support to Ukraine.
Deliveries are expected to begin in early 2025. The main buyer will be Germany, which will ensure the transfer of part of the ammunition to Ukraine. In addition, the customers are partner countries: the Netherlands, Estonia and Denmark.
Simultaneously with the signing of the framework agreement, a contract was signed to ensure capacity utilization of a new plant under construction in Unterluss (Lower Saxony) in Germany. The order includes the supply of 155 mm shells of various types with a total cost of about 880 million euros. Deliveries are scheduled for 2025. A further increase in orders is expected in the coming years.
According to Armin Papperger, Chief Executive Officer of Rheinmetall AG, the framework contract will ensure the necessary capacity utilization of the new plant, which is being built in Unterluss to supply the German Armed Forces with ammunition. The German Federal Chancellor assured the company of the order placement during his visit on the occasion of the groundbreaking ceremony on February 12, 2024.
Rheinmetall will produce all components of artillery ammunition in Unterluss, which will allow it to offer a "full shot" from a single source: a projectile, a fuse, an explosive charge and a propellant charge. The annual capacity of the enterprise of 100 thousand shells will be reached from the second year of production, and then it will increase to 200 thousand per year.
According to Rheinmetall, the experience of the conflict in Ukraine has shown a huge need for artillery ammunition. The production facilities available in the Western world are not designed for such volumes. Therefore, Germany, like other countries, plans to purchase large quantities over a longer period of time.
Recently, the company has made significant investments in the development of production. Since 2025, Rheinmetall plans to produce up to 700 thousand artillery shells and 10 thousand tons of gunpowder annually at its facilities in Germany, Spain, South Africa, Australia and Hungary. The family of ammunition offered by Rheinmetall in the artillery sector includes the high-explosive fragmentation projectile DM121, smoke projectile DM125, projectile with self-aiming combat elements DM121 SMArt (jointly developed with Diehl Defense), as well as the training RH68 equipped with a bottom gas generator RH1901 and smoke RH1902. The group's product range also includes the Assegai universal family of 155 mm artillery ammunition manufactured by the South African company Rheinmetall Denel Munition. It includes low-sensitivity ammunition, conventional high-explosive fragmentation shells, as well as smoke, lighting, infrared lighting and others. The Assegai family with a tapering tail section and a bottom gas generator allows you to hit targets at a range of up to 40 km.
