Rheinmetall Wins Major Contract with Spanish Armed Forces for Propellant Charge Modules.

Rheinmetall signed a framework agreement with the Spanish Army on August 1, 2024, to supply approximately half a million modular propellant charge systems for 155mm long-range artillery ammunition. This contract, valued at 205 million euros, is scheduled for deliveries from mid-2024 to the end of 2025, with a two-year extension option, which could increase the total contract value.
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Rheinmetall signed a framework agreement with the Spanish Army. (Picture source: Rheinmetall)

This initiative is part of Spain's strategy to replenish its ammunition stocks in response to the conflict in Ukraine. The propellant charge systems pertain to 155mm caliber howitzers, notably the M109 and SIAC, essential components for modern artillery operations where projectiles and propellant charges are loaded separately to achieve different ranges.

This contract is one of several agreements made by the Spanish Army with Rheinmetall in 2024. In April, Rheinmetall received a substantial order for mortar shells, valued at several tens of millions of euros. In March, the company secured a contract worth more than 200 million euros to supply 155mm artillery ammunition by the end of 2025.

Rheinmetall, a global leader in the manufacture of large-caliber munitions and propellant charge systems, continues to assert its crucial role in enhancing the capabilities of the Spanish armed forces amid growing security concerns in Europe.

The global context of this contract is part of a series of Rheinmetall initiatives aimed at increasing its ammunition production capacity in Europe. In August 2023, Rheinmetall acquired the Spanish ammunition manufacturer Expal, which increased its production capacity to meet the growing demand for ammunition in Europe. Additionally, Rheinmetall established a partnership with a Ukrainian company to set up a competency center in Ukraine, dedicated to the local production of 155mm caliber ammunition.

In May 2024, a NATO client also placed a significant order with Rheinmetall for artillery ammunition, including tens of thousands of 155mm projectiles and several hundred thousand propellant charge modules, with a total value of nearly 300 million euros, with deliveries scheduled between 2024 and 2028.

Simultaneously, the Spanish Army launched a call for tenders in January 2024 to acquire 155mm artillery ammunition to replenish stocks for the M109A5 weapon systems and the Santa Bárbara Sistemas 155/52 howitzer. The contract includes a wide range of ammunition configurations, including explosive, smoke, and illumination variants, tailored to the operational requirements of Spanish infantry units.

With these developments, Rheinmetall strengthens its position as a supplier of high-precision artillery systems and munitions, offering optimized solutions for varied operational environments, from rugged terrains to urban areas.