German arms manufacturer Rheinmetall has been awarded a new contract to deliver infantry fighting vehicle (IFV) ammunition for an undisclosed European military customer.
The total estimated value of this contract is more than €200m.
Delivery of associated tank ammunition will take place between 2023 and 2025.
The latest order is the second major IFV ammunition contract secured by the company this month from European military customer. Previous order was announced by Rheinmetall on 25 April.
Rheinmetall said that this is due to the current increase in the demand for ammunition by the international armed forces.
According to the company, it is the sole single source supplier of 20mm to 35mm ammunition used with medium calibre automatic as well as anti-aircraft cannon of a wide range of platforms.
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The company also specialises in manufacturing 155mm artillery shells as well as 105mm ammunition for Leopard 1 vehicle and 120mm ammunition for the Leopard 2 main battle tanks.
Rheinmetall said it has the capacity to address bulk requirements and make large-scale deliveries to the customers in a short period of time.
At present, the company is setting up a new additional production line at its plant in Unterlüß, Germany.
This production line is meant for medium-calibre ammunition and will help the company to fulfil the rising demands for air defence munitions. It is expected to start operating from this summer.
In February, the Düsseldorf-based company secured a contract to supply 35mm ammunition to the Ukrainian Armed Forces’ Gepard anti-aircraft tanks.