The Spanish army has entered into a “framework agreement” with the German defense firm Rheinmetall to procure approximately half a million modular propellant systems for 155mm extended-range artillery ammunition, the company announced.
In last week’s statement, Rheinmetall revealed that the €205 million ($224.6 million) contract was finalized in July, with deliveries expected to begin in the middle of this year and extend into 2025. This order follows a similar transaction in March, where Madrid placed an order with Rheinmetall for 155mm ammunition for a comparable amount.
“In light of the ongoing Russian aggression in Ukraine, the Spanish army aims to replenish its ammunition reserves,” stated Rheinmetall. “As part of this strategy, the procurement of propellant charge systems for the M109 and SIAC 155mm howitzers is underway.” While this new order from Spain is significantly smaller than a June acquisition made by the German military, it represents one of several recent international initiatives by Rheinmetall in the ammunition production sector.
Immediately following the announcement of the Spanish deal, Rheinmetall disclosed plans to acquire a majority stake in South African company Resonant Holdings, which specializes in chemical, energetic, and explosives technology, as well as industrialization and manufacturing capabilities. “This planned acquisition is Rheinmetall’s response to the surging global demand in the ammunition sector and the ensuing customer requirements for constructing new production facilities,” the company noted, emphasizing that the deal would establish a new joint venture called Rheinmetall Resonant South Africa. This move will significantly expand Rheinmetall’s capabilities in ammunition production by enhancing vertical integration for the planning, construction, and operational management of facilities producing chemical products, including propellant powder and explosives.
Additionally, just days prior, Rheinmetall announced its formal takeover of a new 30mm ammunition factory in Hungary intended for manufacturing 30mm rounds for the KF41 Lynx infantry fighting vehicle (IFV). This production will also supply Hungary’s military forces.
These strategic maneuvers occur amidst a global surge in ammunition demand, largely driven by the intensity of conflict in Ukraine, characterized by both sides exchanging heavy artillery fire, particularly with 155mm shells. Despite receiving significant ammunition support, Ukraine faces challenges as Russian forces have maintained a superior volume of fire. Moreover, the extensive donations to Ukraine have left Western stockpiles critically low, prompting these proactive measures in ammunition production.
