Germany’s armed forces have awarded Rheinmetall a contract to supply up to 123 infantry heavy weapon carriers, in a deal valued at approximately 2.7 billion euros ($2.94 billion), the arms manufacturer announced on Thursday. Rheinmetall stated that delivery of the “Schwerer Waffentraeger Infanterie” is scheduled to commence in 2025, and the contract encompasses service and maintenance provisions.

The new infantry heavy weapon carriers are intended to replace the Wiesel tracked vehicle, providing direct tactical fire support for infantry units. These vehicles will be classified under the Bundeswehr’s new “medium force” category, designed for rapid deployment over long distances, as highlighted by Rheinmetall.

The production of these vehicles will be facilitated at Rheinmetall’s facilities in Redbank, Australia. The company has capitalized on increased defense spending by Germany and NATO allies since Russia’s invasion of Ukraine two years ago. Germany, serving as Kyiv’s largest military supporter in Europe, has announced a new defense policy in response to the conflict, including the establishment of a 100-billion-euro defense fund aimed at modernizing its armed forces.

This contract with Rheinmetall reflects Germany’s ongoing efforts to bolster its military capabilities and adapt to evolving security challenges in the region. The procurement of infantry heavy weapon carriers underscores Germany’s commitment to enhancing its military readiness and operational effectiveness in the face of changing geopolitical dynamics.

Rheinmetall’s selection for this significant contract underscores its position as a key player in the defense industry, providing advanced solutions to meet the evolving needs of modern armed forces. The “Schwerer Waffentraeger Infanterie” vehicles will play a crucial role in enhancing the Bundeswehr’s capabilities, offering improved firepower and mobility for infantry units.

By opting for these infantry heavy weapon carriers, Germany aims to modernize its military equipment and align its forces with emerging strategic requirements. The decision reflects a broader trend among NATO allies to bolster their defense capabilities in response to geopolitical shifts and security challenges.

Furthermore, the utilization of production capacity in Australia highlights the global nature of defense manufacturing and the interconnectedness of international defense supply chains. Leveraging facilities across different countries allows for efficient production and distribution of military equipment, enhancing the responsiveness and flexibility of defense procurement programs.

Overall, the contract awarded to Rheinmetall underscores Germany’s commitment to strengthening its defense posture and underscores the importance of investing in cutting-edge military technology to safeguard national security interests. As threats continue to evolve, robust defense capabilities remain essential for ensuring stability and deterring potential adversaries in an increasingly complex security environment.