Rheinmetall MAN Military Vehicles is to supply Germany's armed forces with more than 2,000 logistics vehicles in a number of variants, the company said on Thursday.

The framework agreement from the Federal Office for Bundeswehr Equipment, Information Technology and In-Service Support is for a seven-year period, provides for 2,271 HX2 family vehicles, and has a gross value of about $1 billion.

An initial lot of 558 trucks -- gross value of more than $272 million -- has been taken under contract, together with special tools and training support, Rheinmetall said.

The vehicles will be assembled at the Rheinmetall MAN Military Vehicles plant in Vienna but key components will be produced in Germany.

The vehicles are scheduled for delivery between 2018 and 2021.

"This new Bundeswehr order underscores yet again Rheinmetall's status as one of the world's foremost suppliers of systems and equipment for ground forces, with an extensive portfolio of tracked and wheeled tactical and logistic vehicles," Rheinmetall said in a press release.

The new vehicles are to replace KAT I generation of trucks made by MAN. Some of the Kat I vehicles have been in use for 40 ears.

The HX2 family of vehicles to be supplied range from 4x4 to 10x10 configurations. Some are cargo trucks and heavy-duty recovery vehicles, such as tankers and system platforms, while others are folding-road and bridge-laying systems.

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