DUSSELDORF, Germany, Feb. 4 (UPI) -- Propellant powder for artillery shells is to be provided by Germany's Rheinmetall Nitrochemie to Nexter of France under a 10-year agreement.
Rheinmetall said the agreement covers the supply of tried-and-tested Rheinmetall Nitrochemie propellants for existing types of medium- and large-caliber ammunition in domestic and international markets.
New types of ammunition for new markets will also be developed by the two companies 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." Rheinmetall said in announcing the deal. "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."
Rheinmetall Nitrochemie, one of Europe's largest producers of propellant powder, is jointly owned by Rheinmetall and RUAG of Switzerland. It has plants in Aschau, Germany, and Wimmis, Switzerland.
