South Africa’s Rheinmetall Denel Munition (RDM) has secured the largest contract in its history — a multi-year, multi-million-euro order for its advanced 155mm Assegai artillery ammunition family from a European NATO member.
Signed in the second quarter of 2025, the landmark contract underscores the soaring global demand for high-performance artillery shells as NATO allies ramp up procurement to meet evolving security threats. Deliveries will begin this year and run through 2027, cementing RDM’s position as a critical supplier in the NATO and allied defence network.
By Jarryd Sinovich
World-Class Firepower, Tested and Proven
The Assegai suite includes a full range of NATO-standard munitions — high-explosive, smoke, infrared illumination, pre-formed fragmentation, and extended-range V-LAP (Velocity-enhanced Long-range Artillery Projectile) shells. Tested to ranges of over 40 km, the system even achieved a record 76 km shot in a South African trial, demonstrating its long-range potential for modern battlefield requirements.
Rheinmetall’s unique modular propelling charges, paired with the Assegai family, ensure full interoperability with NATO-standard systems and various 39 to 52 calibre barrel configurations — such as the PzH 2000 self-propelled howitzer.
Expanding Production Capacity to Meet Global Demand
To meet surging requirements, Rheinmetall has invested heavily in capacity expansion since 2022, aiming to produce 1.5 million 155 mm shells per year by 2027. This growth includes new production lines across Europe and strategic partnerships — such as its agreement with India’s Reliance Defence to secure a stable supply of explosives and propellants for medium- and large-calibre ammunition.
In South Africa, the recent launch of Rheinmetall Resonant South Africa (Pty) Ltd marks an added boost to local industrial capabilities. The new entity, formed in June 2025, focuses on designing and developing chemical processing plants, supporting the broader supply chain for artillery systems.
Significant Economic Impact for South Africa
Dr. Frank Dirksen, CEO of Rheinmetall Denel Munition, highlighted the importance of the deal for South Africa’s defence sector:
“This record order strengthens our growth trajectory and directly contributes to the local economy. With over 2,500 employees and a supply chain that supports more than 1,500 domestic suppliers, major contracts like this sustain jobs and create new opportunities.”
With the global security landscape evolving, Rheinmetall’s South African operations are now firmly on the front line of NATO’s artillery supply chain — a clear signal that local industry can compete and win on the international stage.
