Rheinmetall has signed a framework agreement with the UK Ministry of Defence (MoD) for the supply of infantry ammunition to the British Army.
Under the framework contract with defence procurement agency Defence Equipment and Support (DE&S), Rheinmetall will supply specific impact rounds, ammunition and grenades in the next five to seven years.
The renewed contract has an estimated throughput of up to €100m.
Furthermore, the contract will establish Rheinmetall as the default source for 25 infantry ammunition products.
The company produces these products at four manufacturing locations in Germany and Switzerland.
Rheinmetall weapon and munitions UK sales director Simon Valencia said: “We are delighted to be able to renew our long-standing supply agreement with the UK MoD and provide the British Armed Forces with high-quality reliable products that have been proven both operationally and in training for the last 15 years.
“This new contract provides the UK MoD with value for money and continued confidence in re-supply of assured munitions products. The UK MoD is a key strategic partner for Rheinmetall and this new contract supports Rheinmetall’s continued growth into the UK defence market.”
The latest contract comes after the company renewed a partnership agreement with the Dutch procurement authority Defence Materiel Organisation (DMO).
Under the agreement, the firm will supply ammunition to the Dutch Armed Forces until 2030.
The framework agreement signed by DE&S allows for repeat procurement of in-service munitions.
Earlier this month, Rheinmetall launched UK-based military vehicles joint venture with BAE Systems.
Pursuant to an agreement reached in January, BAE Systems agreed to sell a 55% majority stake in its UK combat vehicles business to the German firm.
The Rheinmetall BAE Systems Land JV is hoping to secure a major role in manufacturing the Boxer 8×8 vehicle for the British Army’s Mechanised Infantry Vehicle programme.