Rheinmetall signs $521 million agreement for ammunition as it plans factory in Latvia
Rheinmetall bought Spanish munitions company Expal Systems to boost artillery production but is also building new facilities. (Photo: Expal Systems)
Rheinmetall has been increasing its production capacity since 2022 and aims to be able to produce up to 1.5 million 155mm artillery shells annually by 2027.
Rheinmetall Expal Munitions will supply 155mm M107 projectiles with M4A2 propellant charges and 105mm M1 projectiles to an Eastern European country in a total deal worth approximately €444 million (US$521 million).
The company will act as a subcontractor to Global Military Products which has been commissioned by the US government. Under the deal, €170 million has already been booked as a pre-order, meaning that a further €274 million in artillery has now been ordered. Deliveries are scheduled to begin in 2026 and are expected to be completed in June 2027.
Earlier this month, the company announced it was further expanding
Already have an account? Log in
Want to keep reading this article?
More from Land Warfare
-
![Dedicated drone munitions could unlock modular mission potential]()
Dedicated drone munitions could unlock modular mission potential
Top attacks have proven effective against heavily armoured vehicles in Ukraine. A new family of uncrewed aerial system-delivered munitions is looking to press that advantage further.
-
![Germany signs multi-billion-dollar deals for 6x6 CAVS and GDELS Eagle vehicles]()
Germany signs multi-billion-dollar deals for 6x6 CAVS and GDELS Eagle vehicles
The order is a further boost for the Common Armoured Vehicles System programme which has notched notable successes in the past 12 months. The first vehicle, made in Finland, will be delivered next year with local production expected to ramp up in 2027.
-
![Rheinmetall and KNDS tank tie-up narrows trans-European options]()
Rheinmetall and KNDS tank tie-up narrows trans-European options
The French and German governments signed an agreement in June 2018 to cooperate on the development of a new main battle tank under the Main Ground Combat System programme but the effort has struggled. This new agreement may damage it further.
