Valued at 8.5 billion euros! German military companies receive the largest order in history
Due to the continued tense geopolitical situation and the resulting increase in defense budgets, Rheinmetall, Germany's largest military industrial group, recently received the largest order in its history.
The company announced on the 20th local time that it had reached an agreement with the German Federal Armed Forces on a framework contract for artillery ammunition worth up to 8.5 billion euros.
According to media reports, the order mainly involves millions of artillery shells with a range of 40 kilometers and a caliber of 155 mm.
It is reported that the ammunition involved in the framework contract reached on the 20th is mainly to replenish the depleted inventory of the German Federal Armed Forces. In addition, Germany's NATO allies the Netherlands, Estonia and Denmark also participated in this order. Most of the ammunition they produce will be supplied to Ukraine, and the first batch of ammunition is expected to be delivered in early 2025.
As Germany's largest military industrial group, Rheinmetall also produces tanks, military trucks and guns, and has factories in Spain, South Africa and Australia.
Before the Ukrainian crisis escalated, Rheinmetall produced about 70,000 rounds of artillery ammunition each year; after acquiring a Spanish ammunition manufacturer, the company significantly increased its production: by 2025, it could produce about 700,000 rounds of artillery ammunition each year.
Wei Dongxu, editor-in-chief of Global Military Report, a program on China Media Group's Global Information Broadcast, analyzed that there are multiple factors behind Germany's largest military-industrial group receiving the largest order in history.
Rheinmetall's acquisition of the super large order is closely related to the current conflict between Russia and Ukraine. It is the Ukrainian crisis that has brought huge profits to the German defense giant.
After the outbreak of the Ukrainian crisis, Germany was one of the main forces among NATO member states to provide artillery, tanks, and armored vehicles. In addition, Germany was also responsible for providing shells for 155mm caliber howitzers.
As the Russian-Ukrainian conflict has lasted for more than two years, many European countries, including Germany, have run out of ammunition stocks. In view of this, dozens of countries supporting Ukraine formed the "Ramstein Group" and later formed the "Artillery Alliance" to solve the shortage of weapons and artillery shells faced by the Ukrainian army.
In addition, the German Bundeswehr also needs to replenish its ammunition, and now a large part of Germany's military budget is used to purchase artillery shells. As a long-established European military industrial enterprise, Rheinmetall naturally became the main beneficiary.
Affected by the conflict between Russia and Ukraine, many European countries, including Germany, are expanding their military forces. As a result, the demand for tanks, armored vehicles, and self-propelled artillery is also increasing. Rheinmetall's core defense products and main combat equipment have a strong connection, and it will definitely receive more orders.
Source: Global Information Radio's "Live World"
