Rheinmetall says it has received a record order from the German armed forces for the supply of military trucks.

A framework agreement for the delivery of up to 6500 vehicles worth up to 3.5 billion euros has been signed, Rheinmetall announced on Monday. The budget committee of the Bundestag had already released the funds at the end of June. 610 vehicles with a value of over 300 million euros were ordered immediately and 250 trucks will be delivered this year. The lion's share will be financed by the 100 billion euro special fund for the German armed forces, which the German government launched after the Russian invasion of Ukraine. Rheinmetall will book the order in the third quarter of the 2024 financial year.

The Bundeswehr has repeatedly ordered military trucks from Rheinmetall in the past. The Group is also one of the world's largest manufacturers of ammunition. The Bundeswehr ordered ammunition worth around 8.5 billion euros from the Düsseldorf-based company at the end of June.

The Russian invasion of Ukraine had brought about an economic turnaround for Western arms manufacturers such as Rheinmetall. The industry is needed to strengthen the Bundeswehr and the troops of the NATO states and Ukraine.

(Report by Matthias Inverardi, edited by Olaf Brenner. If you have any queries, please contact our editorial team at berlin.newsroom@thomsonreuters.com (for politics and the economy) or frankfurt.newsroom@thomsonreuters.com (for companies and markets).)