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Rheinmetall signs agreement with UK for infantry ammo

8th July 2019 - 11:30 GMT | by Shephard News Team

RSS

Rheinmetall has been awarded a framework contract by the UK Ministry of Defence for the provision of infantry ammunition.

The company and the UK’s Defence Equipment and Support (DE&S) defence procurement agency signed the framework agreement in June, Rheinmetall announced on 5 July, which will enable the repeat procurement of infantry ammunition.

It will serve as the default source of supply for specific impact rounds, ammunitions and grenades in the next 5-7 years, and has an estimated value of £90 million.

Rheinmetall continues to expand its role as a supplier of ammunition, it said, and this follows a recent Dutch armed forces renewal partnership agreement signing for the supply of ammunition, which runs through to the end of 2030.

The UK contract, which has now been renewed with the British procurement authorities, establishes Rheinmetall as the preferred supplier of 25 infantry ammunition products produced by four manufacturing locations in Germany and Switzerland.

‘We are delighted to be able to renew our long-standing supply agreement with the UK MoD and provide the British armed forces with high quality, reliable products that have been proven both operationally and in training for the last fifteen years,’ Simon Valencia, sales director for Rheinmetall Weapon and Munitions UK, said.

‘This new contract provides the UK MoD with value for money and continued confidence in re-supply of assured munitions products. The UK MoD is a key strategic partner for Rheinmetall and this new contract supports Rheinmetall’s continued growth into the UK defence market.’

DE&S is currently in the process of negotiating a portfolio of framework agreements with defence suppliers to enable repeat procurement of in-service munitions, and the contract with Rheinmetall is the first contract the agency has agreed with the munitions industry on framework terms.