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Scandinavian Deals Could Be Worth More Than 2B Euros for Rheinmetall

May. 29, 2014 - 04:05PM   |  
By ALBRECHT MÜLLER   |   Comments
Sweden recently joined Norway in ordering military vehicles in a deal that eventually could be worth more than €2 billion.
Sweden recently joined Norway in ordering military vehicles in a deal that eventually could be worth more than €2 billion. (Rheinmetall MAN Military Vehicles)
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BONN — Two recent truck deals with Scandinavian countries could eventually be worth more than €2 billion (US $2.72 billion) for Rheinmetall, the company says.

The Düsseldorf-based company announced that on May 28 Sweden signed a framework agreement for a joint procurement of military logistics vehicles. Norway signed a similar deal a few weeks ago.

Sweden has ordered 215 and Norway 120 vehicles from Rheinmetall MAN Military Vehicles (RMMV). The company is a joint venture of Rheinmetall AG and MAN Truck & Bus with Rheinmetall holding a 51 percent share. The combined value of both orders is about €200 million. The vehicles are in different configurations, some with a protected driver cabin.

The first lots from both orders are supposed to be delivered between the end of 2015 and the end of 2017. The framework agreement also expresses the intention of Sweden and Norway to buy up to 2,000 military logistics vehicles in the 2014-2026 time frame, Rheinmetall says. This would boost the total value of the orders to more than €1 billion.

Both Scandinavian countries also signed a vehicle service agreement with RMMV covering an optional period of three decades, potentially adding another €1 billion in additional value, Rheinmetall says.

Email: amuller@defensenews.com.

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