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14/11/2024 | Press release

Rheinmetall to deliver Canada’s Enhanced Recovery Capability project worth over $300 million CAD

Key facts
  • Rheinmetall wins Canada’s Enhanced Recovery Capability (ERC) project
  • 85 HX 8x8 tactical trucks will be delivered to the Canadian Armed Forces
  • The contract is worth $325 million CAD (around €215 million) and will last 5 years
  • Additional service agreement worth $28.9 million CAD (around €20 million)
  • First truck to be delivered in 2027

The Canadian government has awarded Rheinmetall a major order for the production of 85 heavy recovery vehicles to the Canadian Armed Forces (CAF) as part of the Enhanced Recovery Capability (ERC) project. The five-year purchase agreement, worth $325 million CAD (around €215 million), includes vehicles, recovery equipment and other modifications. The first deliveries are scheduled for 2027. A supplementary $28.9 million CAD (around €20 million) multi-year in-service support contract has also been awarded to Rheinmetall.

Serving as prime contractor, Rheinmetall Canada will replace the CAF’s heavy logistic vehicle wheeled recovery fleet with 85 HX 8x8 trucks, each equipped with a heavy towing and recovery module. This will provide the CAF with enhanced capabilities to effectively recover and tow their latest generation of heavier armoured and logistical vehicles. The new HX heavy recovery vehicles also provide additional capabilities, such as an integrated rotary crane that can be used for container handling and for other crane work.

Rheinmetall HX: a best-in-class, combat-proven flagship

Purpose-built for military end users and characterized by high mobility, reliability, and durability, the HX represents a long-term solution for Canada. It will provide logistic support to combat forces anywhere on the battlefield, even in the most stringent conditions. The HX recovery truck will also offer a high level of protection, significantly increasing soldiers’ survivability and mission success.

In terms of maturity, Rheinmetall’s flagship has been reliably serving military customers in the United Kingdom, Australia, New Zealand, Germany, Norway, Denmark, Sweden, Slovenia, Singapore, and Japan in a variety of operational scenarios, from domestic disaster relief and humanitarian support, to combat operations in harsh operating battlefield environments encountered in Iraq, Afghanistan, and Mali. This international distribution of HX trucks brings major advantages when it comes to interoperability and logistics among NATO partners.
 

The ERC team: world-leading partners offering a unique solution

The ERC project team will be led by Rheinmetall Canada, a leading system integrator in the defence and security industry. Rheinmetall Canada will be supported by Rheinmetall MAN Military Vehicles, a German-Austrian world-leading logistic vehicle manufacturer; Miller Industries Towing Equipment, a premier supplier of towing and recovery equipment located in the United States; and Rotzler Holding, a leading manufacturer of hydraulic winches and winch systems based in Germany with operations in Canada.

“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. This vehicle is an extraordinary system which will meet Canada’s needs for decades to come. Moreover, Canada is now joining an elite group of operators of the HX recovery platform and will benefit from other nations’ experience with the system.” stated Pietro Mazzei, President and CEO of Rheinmetall Canada.

“We are very grateful to be able to welcome Canada as a new member of the HX user group,” stated Michael Wittlinger, CEO of Rheinmetall MAN Military Vehicles. “With the heavy recovery vehicle, the HX fleet is now prominently represented on the North American continent for the first time. Our mission-proven vehicle family is increasingly becoming the backbone of the logistics forces of NATO and allied nations.”

Significant industrial and economic benefits for Canada

The benefits of the ERC project will be felt across Canada: it will create high-tech career opportunities at both Rheinmetall Canada and its Canadian suppliers, in addition to generating a number of valuable investments throughout the country. With over 1,5 billion Canadian Dollars in Industrial Technological Benefits (ITB) and Industrial and Regional Benefits (IRB) credited since the company was founded just over 35 years ago, Rheinmetall Canada is one of the leading companies for delivering ITBs, IRBs, job creation, and economic growth to Canada.

About Rheinmetall Canada Inc.

Rheinmetall Canada Inc. is a subsidiary of Germany’s Rheinmetall AG: Europe’s foremost supplier of defence and security technology and a longstanding partner of the CAF. With employees at locations in Saint-Jean-sur-Richelieu, Ottawa, and other offices throughout the world, Rheinmetall Canada has accumulated over 35 years of expertise in system integration, real-time command and control; communication solution; air defence systems; weapons soldier systems; and uncrewed ground systems.

About Rheinmetall MAN Military Vehicles GmbH (RMMV)

Rheinmetall MAN Military Vehicles is one of the world’s leading OEMs of logistic and tactical truck systems. Together with its predecessor companies, the Munich-based joint venture has over 100 years of experience engineering and producing military, militarized, and commercial trucks. The HX family of tactical trucks is RMMV’s combat-proven flagship; over 20 000 4x4 to 10x10 HX vehicles in various configurations currently serve 20 nations worldwide, including Commonwealth nations, as well as numerous other NATO and Association of Southeast Asian Nations (ASEAN) armies.

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