Rheinmetall Secures €100 Million Contract for Bundeswehr Training Rockets.

On July 17, 2024, Rheinmetall announced the signing of a framework contract with the Bundeswehr for the supply of 70mm training rockets for combat helicopters. This contract, with a potential value exceeding €100 million, highlights Rheinmetall's central role in the development and production of munitions in Europe.
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The 70mm training rockets for combat helicopters. (Picture source: Rheinmetall)

The contract starts with an initial order of several tens of millions of euros, placed in the second quarter of 2024. The delivery of the first lot is scheduled for the end of 2024. Following the acceptance of this delivery, full-scale production will extend from 2025 to 2029.

In collaboration with FZ, a Belgian subsidiary of the Thales Group, Rheinmetall is responsible for developing, qualifying, and producing these 70mm rockets. These rockets will be used with the Tiger combat helicopter, which is capable of firing these unguided rockets to engage infantry targets, positions, or lightly armored vehicles.

This contract once again demonstrates Rheinmetall's technological leadership in the munitions field. It also ensures that the Bundeswehr has a secure supply of munitions for the coming years, while providing realistic training conditions for combat helicopter crews.

Additionally, this contract is part of a broader context of Rheinmetall's increased munitions production capabilities. In February 2024, the company inaugurated a new factory in Unterluess, Lower Saxony, designed to produce up to 200,000 projectiles per year starting in 2025. This facility will help meet the growing demand for munitions, exacerbated by the conflict in Ukraine and the increased needs of European armed forces.

Beyond the 70mm rockets, Rheinmetall has recently secured other major contracts with the Bundeswehr, notably for the supply of 155mm artillery munitions. This framework contract, with a potential value of €1.2 billion, includes the delivery of hundreds of thousands of projectiles, fuses, and propellant charges, with deliveries starting in 2025. Part of these munitions will be aimed at supporting Ukraine in its defense campaign.

These agreements not only enhance the operational capability of the Bundeswehr but also reinforce Rheinmetall's position as a key munitions supplier for Germany and its NATO allies. Through these contracts, Rheinmetall ensures optimal utilization of its production capacities and long-term planning of its manufacturing processes, guaranteeing quick availability of munitions when needed.

The 70mm training rocket contract with the Bundeswehr represents a little milestone for Rheinmetall, confirming its crucial role in European defense and its ability to provide advanced technological solutions for armed forces.