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Military

Long-term partnership contract signed with UK procurement authorities

A milestone in cross-border defence technology cooperation

03/10/2005

Rheinmetall Waffe Munition GmbH (RWM) of Ratingen, Germany, has been awarded an ammunition contract by Britain's Defence Logistics Organisation (DLO) worth at least €22.2 million. This order forms part of a partnership contract recently signed with the DLO, which contains an option for a further €14.5 million in procurements.

The impact on international defence technology cooperation of this groundbreaking agreement is set to reverberate well beyond the realm of ammunition, and the contract may expand to include other products from the RWM portfolio. Rheinmetall Waffe Munition is the first non-British company ever to conclude a partnership contract of this type with the DLO.

The partnership contract, which will run until fiscal 2009/10, goes far beyond a standard framework supply contract. During this period, the DLO guarantees to buy a specified number of units from a pool of 15 different products produced by the company's Protection Systems & Pyrotechnics unit, which has plants in Neuenburg/Baden, Silberhütte and Trittau.

Above all, the partnership contract aims to assure the greatest possible cost advantages and planning security to both parties. Furthermore, the "gainsharing" concept will optimise the outcome for both sides, i.e. the obligation to reduce production and logistics costs. The savings for RWM come to 60%, while the DLO can look forward to savings of some 40%.

In particular, the products ordered by the DLO include various versions of the company's 40 mm round and flash stun grenades from Trittau; several different types of anti-riot rubber bullets (so-called baton rounds), colour smoke agents, parachute signal flares with white light and infrared illumination, a new windproof stabilised illumination device (white light and infrared versions) from Silberhütte; and the SPIRCO bispectral IR smoke grenade from Neuenburg. In addition to the existing product pool, tenders have been submitted for artillery simulators and the NICOSIGNAL miniflare signal kit.

Contact

Rheinmetall AG
Corporate Sector Defence
Press and Information
Oliver Hoffmann
Rheinmetall Platz 1
40476 Düsseldorf
Germany
Phone: +49 211 473-4748
Fax: +49 211 473-4157



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