Published by Global Banking & Finance Review®
Posted on February 19, 2025
2 min readLast updated: January 26, 2026
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Rheinmetall signs a $271 million deal with Germany to support troop redeployments, reflecting increased European defense investment.
(Reuters) - Defence group Rheinmetall has struck a deal with Germany's armed forces to provide logistical support during troop redeployments both domestically and abroad, it said on Wednesday.
The framework agreement with Germany's Bundeswehr, worth up to 260 million euros ($271 million), is valid for three years and can be extended until the end of 2029, Europe's largest ammunition maker said.
The order comes as interest in European defence groups soars after U.S. President Donald Trump called on Europe to boost investment in the sector, driving expectations for a surge in military spending.
Shares in Rheinmetall, which have risen nearly tenfold since Russia invaded Ukraine in 2022, were 0.7% higher at 1248 GMT.
Rheinmetall said the agreement was not limited to providing services to the Bundeswehr but also included allied armed forces such as NATO.
"Due to its central location in Europe, Germany is both a transit nation and a logistical hub for collective defence. Within NATO and the EU, the country therefore plays a key role concerning the redeployment of forces," Rheinmetall said.
CEO Armin Papperger told Reuters last week that the company expects to keep growing even faster than earlier thought given the Trump administration's calls for Europe to raise defence spending and take responsibility for its own security.
He said an increase in the German defence budget from the current 2% of national GDP to 2.5% or 3% would translate into 60 billion euros to 70 billion euros in annual defence investment.
($1 = 0.9597 euros)
(Reporting by Isabel Demetz; Editing by Christoph Steitz and Jan Harvey)
The article discusses Rheinmetall's $271 million deal with Germany to provide logistical support for armed forces.
The deal includes logistical support for troop redeployments domestically and abroad, and can be extended until 2029.
The deal reflects increased interest in European defense following calls for higher investment in the sector.
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