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
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