Rheinmetall has clinched over 30 million euros ($32 million) in contracts to deliver 40mm ammunition to two European NATO customers.
The first customer contracted the German firm in December for 300,000 rounds, including low-velocity and high-velocity variants, issuing a first purchase order for 75,000 cartridges.
In a separate contract, the customer ordered 45,000 programmable cartridges in 40 mm x 53 high velocity high explosive-tracer airburst munitions for delivery in the first half of 2024.
Meanwhile, Rheinmetall will deliver 10,000 counter-drone rounds to the second customer, starting in mid-2023.
Explosives Factory in Hungary
The contracts come on the heels of the company clinching a multi-million euro contract to build an explosives manufacturing plant in Hungary.
The factory will begin production in 2027. The explosives will be used for artillery, tanks, and mortars.
The contract addresses the need for “independence from overseas imports” of ammunition amid the shortage across Europe due to the Russian-Ukraine war.