Germany`s Bundeswehr has awarded the Rheinmetall Group with a tank ammunition contract worth approximately EUR 30 million. The ammunition is designed especially for the Leopard 2 main battle tank (MBT).

The contract was signed on July 1, 2005 at the Federal Agency for Defence Technology and Procurement (BWB) in Koblenz. Developed specifically with the out-of-area missions of the German Army in mind, the new ammunition, based on tungsten technology and known as the DM 63, will close a capabilities gap. Thanks to a new propulsion system, this KE round – unlike any other ammunition now available on the market – can be used not only in the most advanced version of the Leopard 2 tank, but also to expand the operational spectrum of the other 350 Leopard 2 MBTs remaining in the Bundeswehr`s inventory, without the need for additional technical modification.

Its temperature-independent propulsion system constitutes a unique selling point, a technical feature unrivalled worldwide. The contract underscores Rheinmetall`s leading edge position in the world of large-calibre armament and ammunition. Thanks to its superior main armament, the Leopard 2 is widely considered to be the world`s most effective main battle tank. Some fifteen nations rely on large-calibre technology from Rheinmetall, giving this new generation of ammunition substantial export market potential.