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?
You may also like
More from Land Warfare
-
![Active vehicle protection comes to the forefront as Trophy and Iron Fist secure contracts]()
Active vehicle protection comes to the forefront as Trophy and Iron Fist secure contracts
Experience on the battlefield is accelerating the adoption of active protection systems as technologies continue to evolve to reflect shifting global defence needs.
-
![World Defense Show 2026: Hanwha increases Middle East presence and reveals Tigon 6x6 sale]()
World Defense Show 2026: Hanwha increases Middle East presence and reveals Tigon 6x6 sale
Shephard sat down with Hanwha Middle East and Africa president Sung Il at World Defense Show 2026 to hear about the company’s plans for the region and how it plans to use local industry success to win deals.
-
![Estonia builds Asia-Pacific links as it looks to scale defence industry capabilities]()
Estonia builds Asia-Pacific links as it looks to scale defence industry capabilities
Collaboration between Estonian defence companies and well-aligned firms in Asia-Pacific will form a key part of Tallinn’s ambitions to significantly grow its defence industrial base.
-
![World Defense Show 2026: DOK-ING working on MV-8 variants and reveals specs ahead of Eurosatory]()
World Defense Show 2026: DOK-ING working on MV-8 variants and reveals specs ahead of Eurosatory
The Croatian company began the development of the MV-8 modular uncrewed platform in the early 2020s. Specifications for the vehicle were revealed to Shephard at World Defense Show 2026.
-
![World Defense Show 2026: Turkish and European industries will cooperate, says Aselsan boss]()
World Defense Show 2026: Turkish and European industries will cooperate, says Aselsan boss
Aselsan was formed 50 years ago in response to difficulties Turkey was facing in sourcing major systems internationally. While some challenges still remain, company president Ahmet Akyol believes a rapprochement is possible.
