Rheinmetall gets multi-billion dollar ammunition production contract and hands over at least 40,000 rounds to Ukraine for Gepard by end of year

German concern Rheinmetall is preparing to receive a contract from the German government. The agreement will allow the company to significantly increase ammunition production, including for Ukraine.

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Rheinmetall CEO Armin Papperger made a statement to this effect. According to him, the framework agreement will amount to several billion euros (€1 = $1.09).

The company expects to close several additional deals during the year, with a total value estimated at more than €10bn ($10.9bn). More specifically, Rheinmetall expects "double-digit sums in billions of euros".

Next month, the company will start supplying ammunition for the Gepard self-propelled anti-aircraft units that have been transferred to Ukraine. Rheinmetall has received an order for 300,000 rounds and promises to deliver 40,000 to 60,000 by the end of this year.

To conclude, Denmark and the Netherlands financed the delivery of 14 Leopard 2 tanks to Ukraine. The deal is valued at more than €100 million. The tanks will be delivered during next year starting in January.

Source: Reuters