German Bundeswehr set to secure massive munitions production contract

The German Ministry of Defence is set to finalize contracts worth €15 billion with two defence firms, Diehl Defence and Norwegian Raufoss Nammo, for the production of 2.35 million munitions, Caliber.Az reports citing German media.

The initial contract, valued at €1.31 billion, will cover the production of 200,000 155-millimetre shells, aimed at replenishing Bundeswehr's ammunition stocks until 2030. Funding will be sourced from the defence budget and a €100 billion special fund earmarked for Bundeswehr modernization.

The budget committee of the Bundestag (Germany's parliament) is expected to approve the request without major hurdles, despite potential financial challenges for the defence ministry in meeting subsequent contract payments.

Under the framework agreement, Ukraine and Germany's NATO allies will also have the option to procure ammunition from these suppliers, reflecting Germany's commitment to bolstering its defence capabilities amid ongoing security concerns, particularly in relation to the prolonged conflict in Ukraine.