# Rheinmetall expects German ammunition order worth billions soon -CEO Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2023-06-16 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Rheinmetall Strikes Multi-Billion-Euro Ammunition Deal with Meta Description: CEO Armin Papperger anticipates a multi-billion euro ammunition deal with Germany, with first 35mm ammo delivery to Ukraine in July. Shares soar. URL: https://financedigest.com/rheinmetall-expects-german-ammunition-order-worth-billions-soon-ceohtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2023-06-15t181511z1lynxmpej5e0tfrtroptp4ukraine-crisis-rheinmetall-1736813871279-compressed.jpg) 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](https://www.financedigest.com/axa-unilever-to-join-new-1-billion-euro-regenerative-agriculture-fund.html "AXA, Unilever to join new 1 billion euro regenerative agriculture fund"), 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”](https://www.financedigest.com/rheinmetall-wins-quarter-billion-euro-order-for-e-vehicle-parts.html "Rheinmetall wins quarter-billion euro order for e-vehicle parts") 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](https://www.financedigest.com/oil-steadies-from-decade-highs-as-iran-talks-kindle-supply-hopes.html "Oil steadies from decade-highs as Iran talks kindle supply hopes") 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](https://www.financedigest.com/biden-johnson-trudeau-pledge-artillery-for-ukraine-in-battle-against-russia.html "Biden, Johnson, Trudeau pledge artillery for Ukraine in battle against Russia") in February 2022. But allies’ [supplies for their own defence have been run](https://www.financedigest.com/no-poop-for-you-manure-supplies-run-short-as-fertilizer-prices-soar.html "No poop for you: Manure supplies run short as fertilizer prices soar") 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](https://www.financedigest.com/more-than-half-52-of-cisos-are-prioritising-gdpr-compliance-over-the-next-12-months-new-data-from-the-2017-financial-services-information-security-network-shows.html "More than half (52%) of CISOs are prioritising GDPR compliance over the next 12 months, new data from the 2017 Financial Services Information Security Network shows") 10 years. 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](https://www.financedigest.com/stellantis-makes-30-billion-euro-wager-on-electric-vehicle-market.html "Stellantis makes 30 billion euro wager on electric vehicle market"). 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](https://www.financedigest.com/flexible-pay-can-boost-low-productivity-in-the-uk.html "Flexible pay can boost low productivity in the UK") to 600,000 rounds in 2024 from 450,000. We expect to work at full capacity [next year.”](https://www.financedigest.com/the-next-upcoming-years-to-see-the-oral-solid-dosage-contract-manufacturing-market-integrating-constructive-innovation.html "The Next Upcoming Years To See The Oral Solid Dosage Contract Manufacturing Market Integrating Constructive Innovation") 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](https://www.financedigest.com/global-equities-waver-on-inflation-view-as-falling-oil-supplies-lift-prices.html "Global equities waver on inflation view as falling oil supplies lift 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](https://www.financedigest.com/boe-set-to-walk-the-line-between-inflation-and-recession.html "BoE set to walk the line between inflation and recession") after Switzerland refused to allow the export of 35mm Gepard ammunition to Kyiv. (Reporting by Sabine Siebold; Editing by Leslie Adler and Conor Humphries) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---