5-7 Year Contract Covers 25 Ammunition Types
Defence Equipment and Support (DE&S) – Britain’s defence procurement agency – and Rheinmetall signed a framework agreement in June to facilitate the repeat procurement of infantry ammunition. The agreement will represent the default source of supply for specific impact rounds, ammunition and grenades over the next five to seven years and has an estimated throughput of up to €100 million.
Rheinmetall continues to expand its role as a major supplier of ammunition: in the last few days, the Dutch armed forces also renewed a partnership agreement for the supply of ammunition with the company, which runs through to the end of 2030.
The renewed contract with the UK Ministry of Defence (MoD) 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. 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,” commented Rheinmetall Weapon and Munitions UK Sales Director, Simon Valencia.
Defence Equipment and Support (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. The contract with Rheinmetall Defence is the first such contract agreed with the munitions industry on framework terms and marks a positive step change in the way MoD engages with industry.