The German company Rheinmetall announced the signing of its first contract to supply the latest RCH 155 self-propelled howitzers to the Bundeswehr. Previously, Germany had only ordered them for Ukraine, with 54 units purchased in September 2022.
The first batch was supposed to arrive this year, provided that the issue with the Kropyva system was resolved. The Bundeswehr's new order includes 84 RCH 155 units, costing €1.2 billion in total. The first deliveries are scheduled to begin in 2027 and continue until 2029.
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According to the company, this order is based on an agreement between ARTEC GmbH, a joint venture of Rheinmetall and KNDS Germany, and the Federal Office of Bundeswehr Equipment, Information Technology and In-Service Support (BAAINBw).
The agreement allows for the potential supply of up to 500 RCH 155 self-propelled howitzers. Moreover, deliveries under this agreement may be made not only to the Bundeswehr but also to foreign customers. While 500 RCH 155s is an impressive number, the Bundeswehr probably does not need that many at present.
Such a deal is likely intended to simplify bureaucracy, reduce unit costs through scaling, and accelerate production under new contracts for other countries. In effect, it represents a reservation of production capacity.
In other words, if a country decides to order the RCH 155, it will contact the BAAINBw and conclude an agreement. The BAAINBw will procure the howitzers for the country, in accordance with the existing framework contract.
This could also apply to Ukraine if its Armed Forces require additional RCH 155s. Alternatively, if another country chooses to finance the purchase, the order would likely be placed through this agreement and the BAAINBw.
It should be noted that this opportunity is not limited to Ukraine. The UK may also benefit from this arrangement, as it has invested in the development of the self-propelled howitzer but has not yet concluded a contract, despite ongoing issues with its artillery capabilities.
With deliveries set to start as early as 2027, production of the RCH 155 for Germany has likely already begun or is about to begin. Given that the production cycle for these self-propelled howitzers is estimated at 2–2.5 years, the question is whether this process can be accelerated.
Regarding the German contract for these systems, reports emerged just two weeks ago that the Bundeswehr planned to order up to 229 RCH 155 units this year for €3.4 billion.
Given that no further orders are expected before the end of the year, the agreement likely provides for the procurement of 229 units for the Bundeswehr, with the remaining capacity intended for export.
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