Order books full
Bundeswehr orders 6,500 trucks from Rheinmetall
01.07.2024, 15:47
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Rheinmetall has landed another major contract from the German Armed Forces. The arms company is to deliver 6,500 military trucks. The contract is worth up to 3.5 billion euros. The lion’s share is to be financed from the German Armed Forces’ special fund.
Rheinmetall says it has received a record order from the German army to supply military trucks. A framework agreement has been signed, which provides for the delivery of up to 6,500 so-called unprotected transport vehicles (UTF) worth up to 3.5 billion euros, Rheinmetall announced. The Bundestag’s budget committee released the funds at the end of June. 610 vehicles worth over 300 million euros were ordered immediately, and 250 trucks will be delivered this year.
The lion’s share will be financed through the Bundeswehr’s 100 billion euro special fund, which the federal government launched after the Russian invasion of Ukraine. Rheinmetall will book the order in the third quarter of the 2024 fiscal year. The Bundeswehr has also repeatedly ordered military trucks from Rheinmetall in the past. The group is also one of the largest ammunition manufacturers in the world. The Bundeswehr had just ordered ammunition worth around 8.5 billion euros from the Düsseldorf-based group at the end of June.
The Russian attack on Ukraine brought about an economic turnaround for Western arms companies such as Rheinmetall. The industry is needed to strengthen the German army and the troops of NATO countries and Ukraine.
The arms company is also confident that it will be able to significantly increase production capacity. In some areas, capacity has already increased tenfold, company boss Armin Papperger told ntv, adding: “In the area of artillery ammunition, we will increase it twentyfold by 2026.”
As a result of the war in Ukraine, Rheinmetall recently received the largest order in the company’s history. A framework contract for the delivery of artillery ammunition worth up to 8.5 billion euros was agreed with the German army. The number of projectiles ordered, which can fly 40 kilometers and have a caliber of 155 millimeters, was not disclosed. It is likely to be several million. “German industry is very capable of taking action,” said Papperger, speaking of “close cooperation with politicians.” Rheinmetall has invested 5.6 billion euros in the past 18 months.