On 6 June 2019, Rheinmetall AG and Defence Equipment and Support, the UK's defence procurement agency, signed a new framework agreement to enable the repeat procurement of infantry ammunition. The framework agreement will represent the default source of supply for specific impact rounds, ammunitions and grenades in the next 5-7 years and has an estimated throughput of up to €100 million (£90m).
Rheinmetall continues to expand its role as a major supplier of ammunition. Only a few days ago, the Dutch armed forces also renewed a partnership agreement for the supply of ammunition with the Düsseldorf-based specialist for security and mobility technology, which runs through to the end of 2030.
The contract, which has now been renewed with the British procurement authorities, establishes Rheinmetall as the preferred supplier of 25 infantry ammunition products produced by four manufacturing locations in Germany and Switzerland. Simon Valencia, Sales Director Rheinmetall Weapon and Munitions UK commented "we are delighted to be able to renew our long-standing supply agreement with the UK MoD and provide the British Armed Forces with high quality, reliable, products that have been proven both operationally and in training for the last fifteen years.
This new contract provides the UK MoD with value for money and continued confidence in re-supply of assured munitions products. The UK MoD is a key strategic partner for Rheinmetall and this new contract supports Rheinmetall's continued growth into the UK Defence Market".
Defence Equipment and Support (DE&S) is currently is the process of negotiating a portfolio of framework agreements with defence suppliers to enable repeat procurement of in-service munitions.
The contract with Rheinmetall Defence is the first contract DE&S has agreed with the munitions industry on framework terms and marks a positive step change in the way UK MoD engages with industry.