German arms manufacturer Rheinmetall secures over EUR 200 million deal with Canada

By Defence Industry Europe

Rheinmetall has been awarded a substantial $325 million CAD contract by the Canadian government to supply the Canadian Armed Forces (CAF) with 85 heavy recovery vehicles as part of Canada’s Enhanced Recovery Capability (ERC) project. The five-year agreement includes vehicles, recovery equipment, and specialised modifications to bolster CAF’s operational capabilities, with the first deliveries set for 2027.

 

In addition to the vehicle contract, Rheinmetall has been granted a supplementary $28.9 million CAD multi-year in-service support contract. Rheinmetall Canada, acting as the prime contractor, will replace the CAF’s existing heavy logistic vehicle fleet with HX 8×8 trucks equipped with advanced recovery modules, enhancing their ability to tow and recover modern armoured and logistical vehicles.

Each new HX recovery vehicle will include a rotary crane, offering additional functionality for container handling and other lifting tasks. The HX fleet, purpose-built for military environments, is known for its durability, mobility, and reliability in supporting combat forces across varied operational conditions.

Rheinmetall’s HX vehicles are already in service with NATO and allied countries, including the UK, Australia, and Germany, proving their effectiveness in diverse missions ranging from disaster relief to combat operations in Iraq and Afghanistan. The international use of HX trucks supports interoperability among NATO partners, an advantage for Canada’s integration into the HX user community.

 

 

The ERC project team is led by Rheinmetall Canada and includes key partners such as Rheinmetall MAN Military Vehicles, Miller Industries Towing Equipment from the United States, and Germany-based Rotzler Holding. “Together, this strong team will provide a sophisticated best-in-class recovery solution that will enable the CAF to fulfil its tasks in support of Canadian national interests,” said Pietro Mazzei, President and CEO of Rheinmetall Canada.

Michael Wittlinger, CEO of Rheinmetall MAN Military Vehicles, also highlighted the strategic importance of Canada’s inclusion in the HX fleet community. “With the heavy recovery vehicle, the HX fleet is now prominently represented on the North American continent for the first time,” he stated, reinforcing the fleet’s growing role within NATO and allied nations.

The project promises significant economic benefits for Canada, creating high-tech career opportunities and attracting investments nationwide. Rheinmetall Canada, which has contributed over $1.5 billion CAD in Industrial Technological Benefits (ITB) and Industrial and Regional Benefits (IRB) to Canada since its founding, continues to drive job creation and economic growth across the country.

Rheinmetall Canada, a subsidiary of Germany’s Rheinmetall AG, has been a longstanding defence partner for Canada, bringing over 35 years of expertise in system integration, communication solutions, and advanced defence technologies.

 

Source: Rheinmetall.

 

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