The Bundeswehr, Germany’s armed forces, has signed a €1.3 billion deal for the purchase of several hundred thousand artillery shells, fuses, and propelling charges, July 18.
Rheinmetall is securing artillery ammunition framework contracts due to the urgent requirement to replenish stockpiles caused by the ongoing war in Ukraine.
To address this need, the Federal Office for Bundeswehr Equipment, Information Technology, and In-Service Support in Koblenz has recently concluded the signing of two contracts with Rheinmetall for the purchase of several hundred thousand artillery shells, fuses, and propelling charges.
The first call-off of shells, valued at approximately €127 million, is expected to be delivered shortly, addressing the immediate ammunition replenishment needs, stated the company.
Rheinmetall has secured a new framework contract to supply 155mm artillery ammunition, alongside the expansion of an existing framework contract, encompassing several hundred thousand shells of various types.
The new framework contract, scheduled to run until 2029, holds the potential for an order volume of approximately €1.2 billion.
In addition, the Bundeswehr has further expanded an existing framework agreement for DM121 ammunition, increasing the order volume from €109 million to a total of €246 million. Alongside the previously mentioned framework contract, this expansion represents an additional order volume of approximately €137 million.
Featuring insensitive characteristics, the DM121 high-explosive shell is used for training and exercise purposes.
In a recent development, the Bundeswehr expanded an another existing framework contract with Rheinmetall, securing the supply of 120mm x 570 tank ammunition, valued at approximately €4 billion.
Furthermore, preceding this acquisition, the Federal Office of Bundeswehr Equipment entered into a contract with a joint venture between Germany’s Diehl and Norway’s Nammo for the procurement of 155mm artillery ammunition.