Rheinmetall wins €400m ammunition supply contract from undisclosed customer

26 July 2016 (Last Updated July 26th, 2016 18:30)

Rheinmetall has secured a contract worth more than €400m to supply ammunition for an undisclosed military customer.

Rheinmetall has secured a contract worth more than €400m to supply ammunition for an undisclosed military customer.

Deliveries under the contract will run for a period of seven years.

Details of the ammunition to be provided under the contract were not disclosed.

The contract follows an agreement signed between Rheinmetall, General Dynamics (GD) Ordnance and Tactical Systems (GD-OTS) and the Canadian Government earlier this month to produce Omnitrap decoy ammunition for the Canadian Navy over a 30-year period.

"Deliveries under the contract will run for a period of seven years."

Under the agreed terms, Rheinmetall will supply key components that are required to produce decoy ammunition, besides providing technical assistance in the installation of an assembly line at the General Dynamics facility in Repentigny, Quebec, where final assembly will take place.

With production and sales locations in more than 15 countries, Rheinmetall Defence produces a wide range of weapons and munitions.

Rheinmetall Defence's product portfolio includes medium and large-calibre solutions, ammunition, infantry products and pyrotechnic devices, as well as warhead and propellant technology for missiles and torpedoes.

It produces a medium-calibre automatic cannon for the Eurofighter, naval patrol craft and infantry fighting vehicles, as well as the main armament of the Leopard main battle tank.

Rheinmetall Defence currently employs 10,000 people and generated €2.6bn in sales in 2015.