Sweden, a member of the North Atlantic Treaty Organisation (NATO), has made a landmark decision to acquire South African-manufactured 155 mm Assegaai artillery rounds and charges from Rheinmetall Denel Munition (RDM).
This procurement represents Sweden’s largest investment in artillery ammunition since the 1980s, reflecting the country’s commitment to enhancing its defence capabilities in an increasingly uncertain global security environment. The deal also marks a major milestone for RDM, a joint venture between Germany’s Rheinmetall Group and South Africa’s state-owned Denel, with Denel holding a minority stake. RDM, the supplier of the Assegaai ammunition, described the Swedish order as the largest in its history.
While the exact monetary value was not disclosed, the Swedish Defence Ministry confirmed in a statement dated 9 July 2025 that the contracts for its Archer artillery system are valued at over SEK 5 billion (approximately R9 billion). Deliveries are set to begin in 2025 and will continue through 2027, ensuring a steady supply of ammunition for Sweden’s military.
The Swedish Defence Ministry’s decision to procure the Assegaai rounds is part of a broader strategy to bolster the country’s resilience and ensure access to critical defence materiel. Swedish Defence Minister Pål Jonson emphasised the importance of this investment, stating, “This order strengthens Sweden’s defence capability. It is a vital investment in the security of Sweden and NATO.”
The acquisition comes at a time when artillery ammunition, including shells and propellant powder, has been in short supply across the international market, a situation exacerbated by Russia’s full-scale invasion of Ukraine in 2022. The ministry noted that concluding agreements with two suppliers—RDM and Nammo, a Norwegian-Finnish defence group—will help increase the long-term supply of artillery ammunition for Sweden. Nammo, the other beneficiary of Sweden’s investment, will supply 155 mm high-explosive extended range (HE-ER) shells with a firing range of up to 40 kilometres. The initial order for Nammo’s ammunition is valued at SEK 1 billion (R1.8 billion), with deliveries expected to begin in 2028. This framework agreement represents a continuation of Sweden’s strategic collaboration with Nammo, supported by the Swedish Defence Materiel Administration and the European Commission, to boost artillery ammunition production in Sweden and the Nordic region. The agreement with RDM, valued at SEK 4 billion (R7.3 billion), focuses on ammunition compatible with Sweden’s Archer artillery system. The Assegaai projectile family, developed by RDM, is designed to be versatile and effective across various platforms.
It includes ballistically matched high-explosive, practice, insensitive munition high-explosive, illuminating, infrared illuminating, smoke, pre-formed fragmented (PFF), and rocket-assisted (V-LAP) projectiles. These rounds are compatible with 39 to 52 calibre weapon systems and adhere to NATO STANAG and Joint Ballistics Memorandum of Understanding (JBMoU) principles. Notably, the Assegaai can be fired from systems like the PzH 2000 self-propelled howitzer. When launched from a 39-calibre barrel, a base-bleed Assegaai projectile can reach over 30 kilometers, while a 52-calibre barrel extends the range beyond 40 kilometers. In 2019, a record shot with a V-LAP round achieved an impressive 76 kilometers, showcasing the ammunition’s advanced capabilities.
RDM’s CEO, Dr. Frank Dirksen, expressed gratitude for the trust placed in the company’s products, stating, “We are very grateful for the trust that our business partners and customers place in our globally proven extended-range ammunition and our technology for long ranges. As a system supplier, we are constantly working to improve our cutting-edge technologies to offer the best possible solutions to modern armed forces.” His comments reflect RDM’s dedication to innovation and its role as a trusted supplier in the global defence industry.
The Swedish order is the latest in a series of international successes for RDM’s Assegaai ammunition. The company has secured multiple contracts over the years from customers, including Australia, the Netherlands, Hungary, and various NATO and non-NATO militaries. This growing list of clients demonstrates the widespread confidence in RDM’s products. Earlier in June 2025, RDM announced another major 155 mm ammunition order from a local customer worth tens of millions of euros, further solidifying its position as a leading ammunition producer. RDM’s parent company, Rheinmetall, has also been actively expanding its production capabilities to meet the surging global demand for ammunition.
In 2024, Rheinmetall announced an agreement to acquire a majority stake in South African engineering firm Resonant Holdings, a move aimed at enhancing its ammunition production capacity. Resonant, known for its expertise in chemical and explosives plant engineering, employs around 150 professionals. Rheinmetall will hold a 51% stake in the new joint venture, with existing Resonant shareholders retaining the remaining 49%. This acquisition is expected to generate annual sales exceeding €100 million (U.S. $109 million), strengthening Rheinmetall’s ability to meet the needs of military forces worldwide.
This strategic move follows Rheinmetall’s landmark framework agreement with the German military in June 2023, valued at up to €8.5 billion—the largest contract in the company’s history. Signed in Koblenz, Germany, by Annette Lehnigk-Emden, President of the Federal Office of Bundeswehr Equipment, Information Technology and In-Service Support (BAAINBw), and Rheinmetall representatives, the deal focuses on replenishing the Bundeswehr’s ammunition reserves and supporting Ukraine’s defence efforts. Deliveries under this agreement are set to begin in early 2025, with Germany as the primary buyer, alongside partner nations such as the Netherlands, Estonia, and Denmark.
Rheinmetall Denel Munition has been at the forefront of innovation in the ammunition sector. One of its notable achievements is the validation of precision projectiles capable of reaching a range of 73 kilometres when fired from howitzers compatible with NATO’s JBMoU. This extended range offers military units greater survivability and offensive power, allowing them to engage targets from safer distances with accuracy and effectiveness. Such advancements ensure that Rheinmetall’s products remain competitive and relevant in modern warfare.
The global demand for artillery ammunition has been on the rise, driven by geopolitical instability and the need for nations to prioritise national security. In July 2023, RDM’s CEO Jan-Patrick Helmsen highlighted this trend during a demonstration for military attachés at the company’s Boskop facility near Potchefstroom, South Africa. He noted that countries are increasingly redirecting resources toward defence, reversing years of shrinking budgets, particularly in Europe. Global military spending surpassed $2 trillion in 2022 and continues to climb, reflecting a heightened focus on preparedness in an uncertain world. For Sweden, the decision to invest heavily in artillery ammunition is a direct response to the changing security landscape. The country’s acquisition of Assegaai rounds from RDM not only strengthens its immediate defence capabilities but also ensures long-term access to critical materiel.
By partnering with both RDM and Nammo, Sweden is diversifying its supply chain and reducing reliance on a single source, a prudent strategy given the global shortage of artillery ammunition. This procurement also holds importance for RDM and the South African defence industry. The record-breaking order from Sweden is a testament to the quality and reliability of the Assegaai ammunition, as well as RDM’s ability to meet the needs of modern armed forces. It opens doors for further international contracts and reinforces South Africa’s position as a key player in the global defence market.