Business Express is an online portal that covers the latest developments in the world of business and finance. From startups and entrepreneurship to mergers and acquisitions, Business Express provides reporting on the stories that matter most to business leaders and decision-makers.The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.
2023 06 15T181511Z 1 LYNXMPEJ5E0TF RTROPTP 4 UKRAINE CRISIS RHEINMETALL
2023 06 15T181511Z 1 LYNXMPEJ5E0TF RTROPTP 4 UKRAINE CRISIS RHEINMETALL

Rheinmetall expects German ammunition order worth billions soon -CEO


By Sabine Siebold

BRUSSELS (Reuters) -Rheinmetall expects to strike an ammunition deal worth billions of euros with the German government in the coming weeks and will deliver the first 35mm rounds for Gepard anti-aircraft guns to Ukraine in July, CEO Armin Papperger said.

“Germany is about to seal a large framework contract with us,” Papperger told Reuters in an interview on Thursday evening in Brussels, where he took part in a first-ever joint session of NATO defence ministers and some 20 defence industry bosses.

Shares were up 3.6% at 0800GMT on Friday following Papperger’s comments.

Papperger said the deal would be worth several billion euros, and he hoped that Rheinmetall, one of the biggest producers of artillery and tank shells in the world, could announce it in the next six weeks.

For the entire year, Papperger said he expects defence orders worth a “double-digit billion euros” sum.

“It will certainly be our best year ever as regards order intake,” he said, adding he anticipated a whole variety of deals – on vehicles, ammunition, electronics and radar systems.

The talks in Brussels were meant to focus on ways to ramp up supplies of artillery shells, air defences and precision-guided, deep-strike ammunition, missiles with a range of hundreds of kilometres such as the British Storm Shadow.

Demand for 155mm artillery rounds has soared in the wake of the invasion of Ukraine in February 2022. But allies’ supplies for their own defence have been run down as they have rushed shells to Kyiv, which fires thousands of rounds per day.

Papperger did not detail any results of the Brussels discussions, but said NATO would issue very precise figures in the coming months on how much more industrial capacity will be needed “so that we are safe in Europe and NATO over the next 10 years”.

Don't miss out on any breaking news or insightful opinions!
Subscribe to our free newsletter and stay updated on the go!


By submitting this form, you are consenting to receive marketing emails from: Global Banking & Finance Review. You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email.

He said Rheinmetall had received orders worth several billions of euros for ammunition alone since the start of the war in Ukraine, and expected additional deals for several more billion euros.

“We are producing artillery (shells) almost at full capacity because the demand is there, the international demand is very high,” he said, confirming past remarks that Rheinmetall will boost production to 600,000 rounds in 2024 from 450,000.

“We expect to work at full capacity next year.”

Asked about NATO’s push for a shift towards common standards in the production of artillery and other shells, Papperger said he was open for such a move should countries agree on standards.

Common standards would ease the flow of munitions supplies and drive down prices, experts say.

In July, Rheinmetall will deliver the first 35mm rounds produced at a new production line in Germany to Ukraine for use in the country’s Gepard anti-aircraft guns, Papperger said.

“The government has ordered 300,000 rounds. … We will certainly deliver some 40,000 to 60,000 rounds this year,” he added.

Rheinmetall set up the production line after Switzerland refused to allow the export of 35mm Gepard ammunition to Kyiv.

(Reporting by Sabine Siebold; Editing by Leslie Adler and Conor Humphries)

 

Recent Post: