The German army intends to order 200,000 artillery shells more than planned from the arms manufacturer Rheinmetall.
Points of attention
- The German army is increasing the purchase of artillery shells from Rheinmetall to help Ukraine in the war with Russia.
- The agreement between Germany and Rheinmetall provides for the purchase of 200,000 155-mm artillery shells worth about 880 million euros.
- Rheinmetall's market value has skyrocketed since Russia's invasion of Ukraine, leading to a surge in orders.
Germany will dramatically increase the order of artillery shells from Rheinmetall
As noted, Germany plans to receive 200,000 additional 155-mm artillery shells worth about 880 million euros as part of a framework agreement with a defence company.
The German army has already agreed to a deal worth 1.2 billion euros for several hundred thousand shells, fuses and charges.
The new shells are intended to replenish army stockpiles as Germany helps supply weapons to Ukraine, which is fighting a Russian military invasion in 2022.
As Western governments bolster their armies and stockpile after supplying arms to Kiev, Rheinmetall, whose market value has more than quadrupled since the start of the war in Ukraine, is seeing a sharp increase in orders.
In placing the order, the German Ministry of Defense also wants to ensure that Rheinmetall can set up a new production line in the central German city of Unterluss.
What is known about Rheinmetall
Rheinmetall, one of the world's largest producers of artillery and tank shells, began ramping up production after Russia invaded Ukraine, where the need for ammunition exacerbated shortages and left European manufacturers scrambling to meet demand.
On December 4, 2023, it became known that Rheinmetall received an order for the production and supply of artillery shells to Ukraine worth about 142 million euros. Ammunition will be delivered in 2025.
On February 17, 2024, Rheinmetall announced that it would open a plant in Ukraine to produce artillery ammunition.
