Rheinmetall Nears Multi-Billion-Euro Ammunition Deal Amid Defense Expansion

Rheinmetall is finalizing a multi-billion-euro ammunition contract. CEO Armin Papperger revealed it could value in the double-digit billions and is discussing further arms projects with Germany. The nation intends to increase defense spending significantly by 2029, and Rheinmetall anticipates strengthened orders, particularly post-2026.

Rheinmetall, a prominent player in defense production, is close to securing a significant ammunition supply deal worth billions of euros, as disclosed by CEO Armin Papperger in a recent interview. This contract could mark a substantial financial engagement, aligning with the company's upward trajectory.

Speaking from Lithuania, Papperger revealed ongoing dialogues with the German government about expanding technology deliveries, including a potential satellite system. These discussions coincide with Germany's planned increase in defense expenditure to 3.5% of GDP by 2029, a notable rise from the previously achieved 2% target in 2024.

Papperger further mentioned possible expansions into drone manufacturing in the Baltic region and highlighted a joint venture with Italy's Leonardo in military vehicle production. Initial contracts for armored personnel carriers have already been signed, pointing to an optimistic outlook with expected orders soaring to 5 billion euros within the coming year.

(With inputs from agencies.)