13/07/2023 | Press release
Major order: Bundeswehr orders 120mm tank ammunition from Rheinmetall – volume of existing framework agreement expanded to €4 billion
- Framework contract for 120mm x 570 tank ammunition expanded
- Potential total value approx. €4 billion
- First call-off of rounds is worth around €309 million, including VAT
- Order package also includes tank ammunition for Ukraine
- Order underscores customer’s high trust in Rheinmetall expertise and its global leadership in ammunition
The German Bundeswehr has expanded to €4 billion an existing framework agreement with Rheinmetall for the supply of tank ammunition. The order underscores Rheinmetall's role as a major supplier of 120mm tank ammunition to the German armed forces. It also reflects the German military’s commitment to rebuilding its capabilities and increasing its ammunition stocks due to the new security situation. The framework agreement also encompasses a significant amount of tank ammunition for the Ukrainian armed forces.
Based on the framework agreement just signed, the Bundeswehr could procure several hundred thousand rounds of 120mm x 570 cal. service and practice ammunition, the type fired for example by the Leopard 2 main battle tank. Worth around €309 million, a first call-off of ammunition came immediately after the contract was signed.
The scope of delivery includes multipurpose tank ammunition with a non-programmable fuse as well as another variant that can be programmed for three different ignition modes: detonation on impact with and without time delay, and a timed airburst function. The order also encompasses various types of practice ammunition featuring reduced range and lower cost, but which otherwise display comparable ballistic characteristics.
For many Leopard 2 user nations, Rheinmetall is the most important supplier of ammunition for the tank’s 120mm smoothbore main armament. The armed forces of Germany and several partner nations have entered framework contracts with Rheinmetall to secure a steady long-term supply of ammunition, which in turn enables better planning of the production process and optimum utilization of existing capacity. Owing to ongoing production of various types of ammunition during the lifetime of the contract and the resulting rapid availability, the framework contract offers clear logistical advantages. For Rheinmetall, this contractual arrangement assures solid utilization of tank ammunition capacity for years to come.