Rheinmetall Secures €142 Million Contract to Supply 155mm Shells to Ukraine

German defence conglomerate Rheinmetall has clinched a €142 million contract for the production of 155mm shells destined for Ukraine. The company made this announcement on Monday, December 4th, revealing that the buyer of the munitions is a NATO partner country committed to supporting Ukraine with effective and long-term military assistance.

The ammunition will be manufactured by Rheinmetall Expal Munitions, a recent acquisition of the group based in Spain. While the bulk of the deliveries is scheduled for 2025, a portion of the total order, specifically 40,000 units, is set to be supplied in 2024.

The specified timeline for fulfilling the order is influenced by the current global surge in demand for artillery shells and other munitions and armaments.

"The demand for artillery ammunition is currently very high, driven not only by Ukraine's needs but also by the necessity to replenish nearly empty stockpiles of ammunition in Germany and other NATO and EU countries. Rheinmetall plans a significant increase in ammunition production capacity in 2024 at its facilities in Germany, Spain, South Africa, and Australia, aiming to achieve an annual production volume of approximately 700,000 artillery shells," the company stated.

In October, it was previously reported that Ukraine would receive 150,000 shells from Rheinmetall, as per a contract with the German government. Deliveries are expected to commence in 2023.

The Gaze also reported that Rheinmetall is commencing the production of the Lynx armoured fighting vehicle in Ukraine. The company's CEO, Armin Papperger, mentioned Rheinmetall's intention to sign a corresponding agreement with Ukraine. Notably, Ukraine has already established a fully operational service for German armoured vehicles, with Ukrainian specialists undergoing specialized training in Germany. The first domestically-produced wheeled vehicle is expected to be ready in six to seven months, while the initial Lynx IFV is anticipated in twelve to thirteen months.