Germany’s Rheinmetall said on Thursday it expects success in Australia with different vehicle types after beating BAE Systems to a $2.5 billion order for armoured reconnaissance vehicles.
The company, which earlier forecast a rise in sales and earnings this year, also said defence demand in Germany was a growth driver as were defence policy in the European Union and digitalization.
Speaking at a news conference, CEO Armin Papperger also said he could not yet assess whether or when it would be possible to resume sales to Turkey, which have been banned by the German government following a political row.
Australia’s defense ministry picked Rheinmetall for exclusive final talks over a contract to buy its Boxer armored combat vehicles, Rheinmetall said on Wednesday.
The estimated project volume would be around A$3.15 billion ($2.48 billion) and more than 200 vehicles, it said, adding that delivery would likely start in 2019 and last until 2026.
The Boxers are being acquired as part of plans to modernise the Australian Army under the Land 400 Phase 2 Project. The multi-billion dollar project will see Rheinmetall deliver at least 211 of the latest generation Boxer 8×8 vehicles, with Rheinmetall’s advanced Lance 30mm turret fitted to the reconnaissance variants.