Austria awards $574 million contract to Rheinmetall for air defense system upgrades

Europe, News December 14, 2023 , by IRIA No Comments

Austria’s Ministry of Defense has awarded a $574 million (€532 million) contract to German defense firm Rheinmetall to conduct a comprehensive modernization of its existing Skyguard air defense systems.

Austria ordered the state-of-the-art air defense system for €532 million (without value-added tax), which can already be booked as an incoming order in December 2023. “The contract encompasses a project period of 48 months starting in February 2024,” according to the Rheinmetall statement.

The contract was signed in the presence of Austrian Minister of Defense Klaudia Tanner. Both sides signed the deal for Project Skyguard Next Generation in Vienna, Austria.

The Rheinmetall statement said that “On behalf of Austria, a neighboring nation and close partner of Germany, Rheinmetall will be conducting one of the most ambitious air defense projects in Europe. For the Austrian Army, the undertaking is an important step in its “Mission Forward” rearmament program to revamp the country’s armed forces.”

Chairman of the executive board of Rheinmetall AG Armin Papperger welcomed the signing of the contract between the two countries and said “We’re delighted by this important market win for Skynex technology. In this flagship project, Austria is at the absolute forefront of antiaircraft and counter-drone defense in Europe. This major order also highlights Rheinmetall’s key role in reequipping the armed forces of Europe in response to new threats. Our solutions for stationary and mobile air defense are part of this.”

Rheinmetall Skynex air defense system — *^{German defense firm Rheinmetall’s Skynex air defense system. (Image Credit: Rheinmetall)}*

Oliver Dürr, CEO of Rheinmetall Air Defence AG in Zürich, said, that they appreciate the trust of our friends and partners in Austria. “The Austrian Army’s decision in favor of Skyguard Next Generation is more than just a quantum leap – it opens the door to a whole dimension in antiaircraft and counter-drone capabilities.”

Skyguard Next Generation system belongs to the Skynex family of products from Rheinmetall Air Defence. The order package for Austria comprises a total of seven tactical units, each consisting of four 35mm guns, a sensor unit for monitoring airspace, and a command post.

“In the process, twenty-eight 35mm guns currently in the customer’s inventory will be upgraded to the latest state of the art. The contract also includes spare parts, training support, and 35mm ammunition. A contractually agreed option for ordering an additional tactical unit exists as well,” the Rheinmetall statement added.

#Rheinmetall wins major contract: #Austria 🇦🇹 orders state-of-the-art air defence system for €532 million https://t.co/73Vd5JcRgs #AirDefence #Military #Army pic.twitter.com/l41gNufgPj
— Rheinmetall (@RheinmetallAG) December 12, 2023

Skyguard Next Generation is based on existing weapons systems operated by the Austrian Army. According to Rheinmetall, “As part of a service life extension program, its existing 35mm Oerlikon twin guns will be completely modernized and linked to a high-performance target tracking capability and Rheinmetall’s Skymaster command system.”

Key Features of Skyguard Next Generation

Open and modular system architecture
Increased saturation resistance
Functional composition of single effectors and sensors according to the mission requirements
Flexible command and control system
Capability to integrate existing Oerlikon Skyguard® and Oerlikon Skyshield® fire units and most other legacy systems.

The system allows the integration of sensors from different manufacturers and has the capability to implement various types of effectors. “The only requirement for the implementation is an integrated tracking unit,” according to the Rheinmetall.