International defence primes SAAB and Rheinmetall have both announced significant explosive weaponry contracts signed in Europe this week.
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Swedish aerospace and defence company SAAB will deliver Carl-Gustaf M4 weapon, ammunition, and training equipment in a contract with the Polish Ministry of Defence’s procurement authority.
The AU$1.9 billion order for man-portable, multi-role weapon systems and ammunition is expected to be delivered between 2024 and 2027, after it was announced on 4 March this year.
“I am proud of our close relationship with the Polish Armed Forces and that Saab can continue to strengthen Poland’s ground combat capability and national defence with our world-leading Carl-Gustaf system,” Micael Johansson, Saab chief executive officer and president, said.
The contract is expected to be effective by the end of quarter two 2024, subject to the fulfilment of certain external conditions.
German automotive and arms manufacturer Rheinmetall has also announced it will supply multiple rocket launcher ammunition including several hundred guided artillery rockets to a European member of NATO.
Rheinmetall Expal Munitions of Spain will be responsible for manufacturing and delivering the rockets, which have a maximum range of 300 kilometres, for the AU$501 million order.
The order – Rheinmetall’s first sales success in rocket artillery – also encompasses additional services and other systems, with delivery of rockets expected to take place from 2024 to 2027.
Earlier this year, the German defence manufacturer unveiled plans to open a new 155mm artillery ammunition producing plant in Ukraine.
Rheinmetall and a Ukrainian partner company signed a memorandum of understanding to set-up a joint venture, overseen by Ukrainian Minister for Strategic Industries Alexander Kamyshin. Rheinmetall will have a 51 per cent stake in the new company, with the remaining 49 per cent share held by the Ukrainian partner.
The “Ukrainian Competence Center for Ammunition” is expected to produce hundreds of thousands of 155mm calibre ammunition per year in the future, including the corresponding propelling charges.
Rheinmetall AG executive board chairman Armin Papperger said the company will also build an artillery ammunition, explosives and rocket artillery components plant in Lower Saxony, Germany, to begin production next year.
“Demand for ammunition in many countries is enormous – first and foremost in Ukraine, of course. Our intention of establishing another joint venture underscores our support for Ukraine. This joint venture will make a vital contribution to the country’s ability to defend itself – and thus to the security of all Europe,” Papperger said.
“We want to be an effective partner of Ukraine, to help rebuild the country’s once-powerful defence industry, and to assure Ukrainian autonomy in ammunition production.
“Already … we are Kyiv’s most important defence industry partner. We are currently processing several billion euros worth of projects on behalf of Ukraine, with more almost daily.”