DÜSSELDORF (dpa-AFX) - As a result of the war in Ukraine, the arms manufacturer Rheinmetall has received the largest order in its history. The company announced on Thursday in Düsseldorf that it had received a framework contract from the German Armed Forces for artillery ammunition worth up to 8.5 billion euros.

The framework agreement in place since July 2023 had a maximum value of around 1.3 billion euros; this contract has now been increased by around 7.2 billion euros. The number of bullets ordered, which can fly 40 kilometers and have a caliber of 155 millimeters, was not specified - it is likely to be several million. Production takes place primarily in Unterlüß in Lower Saxony. Rheinmetall also has production capacities for artillery ammunition in Spain, South Africa and Australia.

Ammunition to fill the Bundeswehr's stocks

The ammunition covered by the agreement concluded on Thursday is intended to fill the Bundeswehr's rather empty warehouses. Germany's allies the Netherlands, Estonia and Denmark are also to participate in the contract. A large part of the volume is to go to Ukraine. The country, which is under attack from Russia, has already received several deliveries of ammunition from Germany, with further shipments to follow in the future. "We are grateful for the great trust that is expressed in this long-term order as part of the security provision of the Federal Republic and its allies," said company CEO Armin Papperger.

In February, Rheinmetall began construction of a new artillery ammunition plant at its largest site in Unterlüß. Federal Chancellor Olaf Scholz and Defense Minister Boris Pistorius (both SPD) also attended the symbolic ground-breaking ceremony. "The German government is keeping its word," said Papperger after the latest major ammunition order was announced. "This framework agreement ensures the necessary capacity utilization of the new plant that we are building at our Unterlüß site in Lower Saxony to supply our armed forces with ammunition."

Deliveries to begin in 2025

Deliveries under the framework agreement signed on Thursday are scheduled to begin in early 2025; this first tranche is reportedly worth 880 million euros. It is unclear how long the framework agreement will be valid for - the agreement signed last year had a term of six years.

Before the war in Ukraine, Rheinmetall produced 70,000 rounds of artillery ammunition per year; following the increase in production capacity and the purchase of Spanish competitor Expal, this figure has now risen significantly. By 2025, the figure is expected to be 700,000 - and rising. According to older figures, this figure could reach 1.1 million rounds per year by 2027.

Rheinmetall is Germany's largest arms manufacturer, producing tanks, military trucks and guns. The company also claims to be the largest manufacturer of NATO large-caliber ammunition. The company is one of the beneficiaries of the 100 billion euro special fund launched by the German government in response to the Russian attack in 2022./wdw/DP/ngu