German company signs biggest arms deal ever with military for €8.5 billion

German arms maker Rheinmetall received an 8.5 billion euro order on Friday, its biggest ever, as European governments push to boost military spending in the wake of the Russia-Ukraine war.

Rheinmetall said in a statement that it had signed a contract with the German military to supply shells worth up to 8.5 billion euros, adding that “the current contract has been significantly expanded and its main objective is to replenish existing stocks of the German armed forces and their allies and to support the defense operations of Ukraine.”

The German company is aiming for further growth in the coming years due to the war in Ukraine and rising defense budgets in Western countries, according to a presentation it made to investors: The German company, which supplies arms to Israel, expects its annual sales to increase by a fifth by 2026.

Rheinmetall, founded in 1889, produces tanks, anti-aircraft guns, ammunition and military vehicles. The company is currently working on building new production lines to meet Ukraine’s growing demand for arms and ammunition after the war with Russia.

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