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Could US Army replace M777 howitzers with Germany's RCH 155 self-propelled howitzer?.
On August 8, 2024, during a conference call with investors, Rheinmetall CEO Armin Papperger outlined the company’s expectation of generating up to €15 billion in potential revenue over the next decade from KNDS Deutschland's RCH 155 self-propelled howitzer, which is armed with Rheinmetall's L52 artillery gun. Papperger identified Germany, the Netherlands, the United Kingdom, and Ukraine as key customers or potential customers for the RCH 155. Notably, the United States has also shown interest in this system, which could significantly expand Rheinmetall’s presence in the U.S. defense market.
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Rheinmetall CEO Armin Papperger outlined the company’s expectation of generating up to €15 billion in potential revenue over the next decade from KNDS Deutschland's RCH 155 self-propelled howitzer, which is armed with Rheinmetall's L52 artillery gun. (Picture source: KNDS)
Rheinmetall's expansion in the U.S. market was further strengthened by the acquisition of Loc Performance Products, LLC, a Michigan-based vehicle specialist, finalized on August 13, 2024. Valued at $950 million, this acquisition is strategically aligned with Rheinmetall's goal to enhance its capabilities in the production and supply of military vehicles both in the U.S. and globally. This move is expected to bolster Rheinmetall’s position in major U.S. Army contracts, particularly the XM30 Infantry Fighting Vehicle program and the Common Tactical Truck (CTT) program, which together represent a potential market of over $60 billion.
The Boxer platform, developed by ARTEC, is recognized for its adaptability across various military applications. Among its variants is the RCH 155 from KNDS, a 155mm self-propelled howitzer introduced in 2014. This system integrates the Artillery Gun Module (AGM) onto the Boxer chassis, combining mobility with Rheinmetall's L52 155mm artillery gun. The system was designed as a wheeled alternative to tracked howitzers like the PzH 2000, with an emphasis on automation and reduced crew requirements, reflecting ongoing efforts to enhance the flexibility and operational range of artillery units.
The RCH 155 can fire up to nine rounds per minute with a range of up to 40 kilometers using standard ammunition, extendable to 54 kilometers with specialized projectiles such as the Vulcano and Excalibur. The system features 360-degree turret rotation, allowing it to engage targets in any direction without repositioning. A notable feature of the RCH 155 is its ability to fire while on the move, reducing vulnerability to counter-battery fire. The system's high level of automation in loading and firing operations is designed to improve operational efficiency and safety.
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The U.S. Army Futures Command, led by General James Rainey, has indicated that traditional towed artillery systems, such as the M777 howitzer, may no longer meet the requirements of modern battlefield engagements. (Picture source: US DoD)
Countries including Ukraine, the United Kingdom, and Germany have expressed interest in the RCH 155. Ukraine has placed multiple orders for the system as part of its military modernization efforts. The United Kingdom has selected the RCH 155 for its Mobile Fires Platform program, aiming to replace its existing AS-90 howitzers. Germany is also evaluating the system for its future artillery needs, with potential orders under discussion. Other countries, such as the United States, Spain, and Switzerland, are considering the RCH 155 as part of their efforts to upgrade artillery capabilities.
The U.S. interest aligns with broader developments within the U.S. Army, which is actively seeking new artillery solutions to meet the evolving demands of modern warfare. The U.S. Army Futures Command, led by General James Rainey, has indicated that traditional towed artillery systems, such as the M777 howitzer, may no longer meet the requirements of modern battlefield engagements. The Army has identified limitations in towed artillery for large-scale operations against sophisticated adversaries, where mobility, survivability, and rapid deployment are crucial. General Rainey has stated that towed artillery has "reached the end of its effectiveness," underscoring the need for more mobile, indirect fire systems capable of operating in highly contested environments.
In response, the U.S. Army is exploring wheeled artillery systems as potential replacements for the M777. These systems offer enhanced mobility, allowing for rapid repositioning and reducing vulnerability to counter-battery fire. Unlike towed systems, wheeled artillery can move, fire, and relocate quickly, providing tactical advantages on the battlefield. The RCH 155, with its combination of mobility and firepower, is being considered as part of this shift.
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Loc Performance’s expertise is expected to significantly enhance Rheinmetall’s ability to meet the stringent requirements of the U.S. Army, particularly for the XM30 Infantry Fighting Vehicle and Common Tactical Truck programs. (Picture source: Rheinmetall)
In the U.S. market, Rheinmetall's presence has been significantly bolstered by the acquisition of Loc Performance, providing it with expanded manufacturing capabilities, including 1.7 million square feet of modern production space. Loc Performance’s expertise in drivetrains, suspensions, track systems, and other critical vehicle components is expected to significantly enhance Rheinmetall’s ability to meet the stringent requirements of the U.S. Army, particularly for the XM30 Infantry Fighting Vehicle and Common Tactical Truck programs.
Papperger emphasized the strategic importance of the U.S. market, noting that the acquisition of Loc Performance is a decisive step in increasing Rheinmetall's market share. Matthew Warnick, CEO of American Rheinmetall Vehicles, highlighted that this acquisition equips the company with the manufacturing readiness needed to realize major U.S. military contracts, achieving 100% local value creation in the U.S. This initiative underscores Rheinmetall's commitment to supporting the U.S. Department of Defense's modernization efforts, which aim to enhance the effectiveness and mobility of U.S. soldiers on the battlefield.
Rheinmetall’s strategy is further supported by a reduction in export risk due to a high NATO order backlog. The company has experienced a steady increase in orders from NATO and related countries, with these orders comprising 89% of its revenue by FY 2023, compared to 65% in FY 2015. This trend aligns with the company's focus on meeting the needs of NATO member states and their global partners.
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The U.S. Army's exploration of new self-propelled mortar systems, including the Polish M120 Rak, further demonstrates its focus on modern, mobile firepower. (Picture source: PGZ)
The U.S. Army's exploration of new self-propelled mortar systems further demonstrates its focus on modern, mobile firepower. Recent reports indicate interest in the Polish M120 Rak, a 120mm self-propelled mortar system developed by Poland's Huta Stalowa Wola (HSW). This system, which includes an automatic loader with a high rate of fire and a maximum range of up to 10 kilometers, is among the options being considered to enhance the fire support capabilities of U.S. armored brigades.
The potential procurement of the M120 Rak aligns with the Army's broader strategy to upgrade its mortar systems, complementing the introduction of the Armored Multi-Purpose Vehicle (AMPV) platform and the XM1287 Mortar Carrier Vehicle (MCV). Interest in the M120 Rak, along with other systems like the Finnish Patria Nemo, indicates a comprehensive evaluation by the U.S. Army of modern self-propelled mortar solutions that could replace legacy systems and meet future operational needs.