Rheinmetall expects a billion-dollar agreement with the German government to supply shells

The German defense concern Rheinmetall expects to strike an ammunition deal with the German government in the coming weeks.

Armin Papperger, CEO of the concern, stated this in an interview with Reuters.

The deal would be worth several billion euros.

“Germany is about to seal a large framework contract with us,” Papperger shared.

He also hopes that Rheinmetall (RHMG.DE), one of the biggest producers of artillery and tank shells in the world, could announce it in the next six weeks. According to him, the deal would be worth several billion euros.

For the entire year, Rheinmetall‘s CEO expects defense orders worth a “double-digit billion euros” sum.

“It will certainly be our best year ever as regards order intake,” Papperger noted.

He added that he expected a number of agreements to supply vehicles, ammunition, electronics, and radar systems.

According to Papperger, in July, Rheinmetall will deliver the first 35mm rounds produced at a new production line in Germany to Ukraine for use in the country’s Gepard anti-aircraft guns.

“The [German] government has ordered 300,000 rounds… This year, we will definitely supply 40,000 to 60,000 rounds,” he said.

Rheinmetall also won a contract for the supply of 14 Leopard 2 tanks to Ukraine. Denmark and the Netherlands have already funded the purchase.

It is expected that the first tanks from this batch will be delivered to Ukraine in January 2024, and all other tanks will arrive during 2024.