Rheinmetall Wins Major Artillery Order For Ukraine

The German arms manufacturer Rheinmetall has won a large supply order to provide Ukraine with artillery ammunition worth close to 142 million Euros. The deal will see tens of thousands 155mm shells produced by the Düsseldorf-based firm. The ammunition will be made by Rheinmetall’s new Spain-based subsidiary Rheinmetall Expal Munitions. The deal highlights the German company as one of the world’s largest manufacturers of ammunition. The order is expected to be completed in 2025, with an already outstanding order of 40,000 rounds expected to be completed in 2024.

M777 in Ukrainian service, one of a number of 155mm guns in use

To meet the demand for ammunition created by the war in Ukraine, Rheinmetall is looking to increase its manufacturing capability within Germany, Spain, South Africa and Australia. Which will aim to bring its annual output to around 700,000 rounds. Which will help replenish not only Ukrainian but stocks of NATO ammunition that have been used to help the Ukrainian war effort.

The German firm has already sent 100,000 155mm shells to Ukraine, completing an order placed by the German Government in October this year. Rheinmetall already handles supply contracts with the German Bundeswher providing them with over 1 billion Euros worth of ammo.

As well as supplying artillery ammunition the company is also refurbishing Leopard 1 tanks and it was reported last month that Rheinmetall would start to establish production of armoured vehicles in Ukraine itself in the new year. The first Ukrainian-produced Lynx armored fighting vehicles are anticipated to be built in 2025 at the earliest. The news comes after a contract was signed between Rheinmetall and the Ukrainian state-owned company Ukroboronprom.

The joint Rheinmetall-Ukrainian venture was announced on October 24, with sites being rented and operated by Rheinmetall in unspecified locations within Ukraine. Production of the first ten Lynx is reportedly underway at Rhinemetall sites in Germany or Hungary with the involvement and cooperation of Ukraine. The German government continues to be one of the largest providers of war material to the country since the war began in 2022.