The strategic agreement, signed at the Eurosatory exhibition in France, is between Diehl Defense and Oto Melara, part of the Finmeccanica group.
The collaboration will focus on large-caliber conventional ammunition for naval and land forces, Diehl said in a news release.
The two firms have cooperated previously in ammunition and weapon programs of their respective countries, specifically the 120mm guided mortar munition and 155mm guided artillery ammunition used by Germany and with Vulcano 127mm and 155mm ammunition used by Italy.
Exclusive cooperation on short-term projects already begun for national and international customers include the Vulcano 155mm GPS semi-active laser, long-range guided ammunition for the PzH2000 self-propelled armored howitzer, and Vulcano 127mm GPS/SAL for the Oto Melara 127/64 light weight naval gun.
"Further joint programs and products are envisioned in the cooperative relationship. also in the field of conventional ammunition," the companies said.
"The strategic alliance underscores the already ongoing cooperation between Oto Melara and Diehl Defense with regard to the joint development, industrialization, qualification, production, international marketing and sales of the agreed products."