WASHINGTON — The Spanish army has signed a “framework agreement” with German defense firm Rheinmetall for an order of “around half a million modular propellant systems for 155mm extended-range artillery ammunition,” the company said.
In last week’s announcement the firm said the €205 million ($224.6 million) contract was booked in July and delivery is scheduled for the middle of this year and into 2025. In March, Madrid ordered 155mm ammo from Rheinmetall for approximately the same amount of money, the company said.
“Against the backdrop of the Russian attack on Ukraine, the Spanish army also intends to replenish its ammunition stocks,” Rheinmetall said. “In this context, the procurement of propellant charge systems for the M109 and SIAC 155mm calibre howitzers is taking place.”
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Though the new Spanish order is dwarfed by one the German military made in June, it’s just one of a few international moves by the firm related to ammunition production in recent days. The day after the Spanish deal was announced, Rheinmetall went public with a plan to acquire a majority stake in a South African firm, Resonant Holdings, that Rheinmetall said has expertise in “plant engineering capabilities, particularly in the fields of chemical, energetic, and explosives technology, industrialization and manufacturing.”
“The planned acquisition is Rheinmetall’s response to the growing global demand in the ammunition sector and the resulting customer requirements for the construction of corresponding production facilities,” the German company said, adding that the deal included the formation of a new joint venture, Rheinmetall Resonant South Africa. “Rheinmetall is therefore significantly expanding its existing capabilities in ammunition production by vertically integrating further competences, thus positioning itself even more robustly for the independent planning, construction and operation of production facilities for the manufacture of chemical products such as propellant powder and explosives.”
And just days before that, back in Europe, Rheinmetall announced it had formally “taken over” a new 30mm ammunition factory in Hungary designed to produce “30mm ammunition for the KF41 Lynx infantry fighting vehicle (IFV),” also to be made in Hungary for the military there.
The moves come amid a global rush for ammunition, as much of the conflict in Ukraine has been defined in part by each side trading salvos, especially using 155mm artillery. And while Ukraine has received significant support in the form of ammo, officials and experts have noted that Russia has been able to greatly outpace its adversary in sheer volume of fires — and the donations have left Western stocks at critical levels as well.