(pressebox) (Düsseldorf, 2014-02-04) Rheinmetall Nitrochemie and the French defence group Nexter have entered a long-term supply agreement for ammunition components. Set to run for ten years, for Rheinmetall the agreement represents sales volume in the nine figures. The long-term supply agreement makes a material contribution to capacity utilization at Rheinmetall Nitrochemie's Aschau and Wimmis plants. Rheinmetall Nitrochemie is one of Europe's largest producers of propellant powder.

The agreement covers the supply of tried-and-tested Rheinmetall Nitrochemie propellant power for existing types of medium- and large-calibre ammunition in domestic and international markets. Furthermore there is also a special focus on new types of ammunition for new markets. In cooperation with Rheinmetall Nitrochemie, state-of-the-art propellant technologies are to be developed and readied for full-scale production.

For over 15 years, Rheinmetall Nitrochemie has served as a partner of both Nexter and DGA, the French procurement agency. In the process, it has repeatedly demonstrated that it is the right source for ammunition propellant components. The recently concluded long-term supply agreement is thus the logical outcome of a longstanding relationship.

With locations at Aschau in Germany and Wimmis in Switzerland, Rheinmetall Nitrochemie constitutes the Propellants division of Rheinmetall Defence. The Nitrochemie group is jointly owned by Rheinmetall and RUAG.

Rheinmetall Nitrochemie's core competencies are the development and manufacture of propellants and propelling charges for military and civilian requirements. Besides charge systems and propellant powder for large-, medium- and small-calibre ammunition, the company also produces combustible case parts such as the Modular Propelling Charge (MTLS) for artillery systems.