Existing Agreement Extended to 2030
On 3 June the Dutch Defence Materiel Organisation (DMO) – the nation’s defence procurement authority – signed an agreement with Rheinmetall to renew the existing partnership agreement for the supply of ammunition through to the end of 2030. For Rheinmetall, this agreement holds the prospect of order volume worth several hundred million euros during the ten-year period.
The partnership agreement is a prime example of the excellent working relationship between DMO and Rheinmetall as a strategic supplier of weapons and ammunition. DMO is eager to ensure that the Dutch military has a steady supply of safe, secure, state-of-the-art ammunition – now and in the future. Since Rheinmetall is the strategic supplier of ammunition for major weapon systems fielded by the Dutch military, such as the CV9035 infantry fighting vehicle and the PzH2000 self-propelled howitzer, the longstanding relationship between DMO and the company benefits both sides. This is reflected in the steadily increasing volume of services which DMO has asked Rheinmetall to supply on behalf of the Koninklijk Landmacht (Royal Netherlands Army).
Additionally, the partnership agreement offers an added incentive for further cooperation beyond the scope of this contract. Under this partnership agreement, the Netherlands will provide Rheinmetall with a detailed insight into its anticipated ammunition requirements. This knowledge will help the company to optimise production planning, boosting its economic efficiency. In turn, Rheinmetall will keep DMO actively informed concerning forthcoming production possibilities, resulting in cost-savings and also facilitating the Dutch budget planning process. Furthermore, the partnership agreement promotes innovation in the domain of ammunition enhancement, as well as performance-oriented logistics, e.g. recycling or modification of existing ammunition, components and ammunition packaging.
As part of the partnership agreement, an extension of the existing framework contracts for the supply of 155mm ammunition, 35mm medium-calibre ammunition and 40mm ROSY cartridges to DMO for ten or more years will also be sought.
“We’re proud of our strong partnership with DMO, one that’s built on mutual trust and a powerful commitment to innovation,” stated Rheinmetall Waffe Munition GmbH Managing Director, Werner Krämer. “After successfully cooperating for ten years, we now look forward to another decade of supplying the Koninklijk Landmacht with superb service and top technology.”