Rheinmetall’s $100m Defence order ready for delivery

The Australian Defence Force will soon be taking delivery of artillery ammunition from Germany’s Rheinmetall,  as part of the Land 17 Phase 1C.2 Future Artillery Ammunition project.

The order awarded at the end of last year, worth roughly $100 million, includes delivery of various projectile types from the Rheinmetall Assegai family as well as fuses and propelling charges.

The ammunition will be supplied via Rheinmetall’s partner NIOA. Headquartered in Brisbane, NIOA is the largest supplier of ammunition and weapons systems to Australia’s military and law enforcement agencies.

The first lots will be shipped this year, with a second delivery scheduled for 2019. In addition, Australia will also receive war reserve stocks of the ammunition.

The contract also includes several options for further five-year periods, with a total value in the triple-digit million.

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In a company release Tuesday, Rheinmetall said the order represents a significant success for Rheinmetall and its Assegai ammunition.

“It will enable the group to establish itself in coming years as Australia’s sole supplier of artillery ammunition,” the company said.

“In addition, it is the first time a M777A2 field howitzer user nation has opted for the Assegai family.”

The Canadian and United States armed forces are among countries that also deploy the M777A2.

Last week, the government announced a $5 billion contract to purchase Rheinmetall’s Boxer multipurpose wheeled armoured vehicles under the Land 400 Phase 2 program.

A total of 211 Combat Reconnaissance Vehicles are to be built for the military, with first delivery in 2020.