Germany’s Rheinmetall and Italy’s
Leonardo signed a memorandum of understanding Wednesday establishing a new joint venture to develop and build tanks and land defense systems for the European market.
The firms noted the new joint venture begins with a focus on Italy’s efforts to field a new Main Battle Tank and Infantry Fighting Vehicles, planning to offer Rheinmetall’s Lynx platform for the latter effort.
“With Leonardo and Rheinmetall, two leading European suppliers of defense technology are joining forces to realize ambitious projects. Together we want to set new standards and open the door to a new generation of state-of-the-art combat vehicles in and for Europe. In doing so, we are addressing the Italian market as well as other partner countries that have a need for modernization in the field of combat systems,” Armin Papperger, CEO of Rheinmetall, said in a statement.
The agreement to form the new joint venture arrives on the day as German business publication Handelsblatt reported that Italy is set to buy hundreds of Rheinmetall’s Lynx and Panther platforms under a new $21.5 billion contract framework.
Rheinmetall and Leonardo noted the new joint venture will be headquartered in Italy, with the companies set to pursue the future European Main Ground System program.
Under the joint venture, Leonardo will provide mission systems, electronic suites and weapons integration for Rheinmetall’s combat vehicle platforms, according to the companies.
“Technology and industrial synergies between Leonardo and Rheinmetall are a unique opportunity to develop state-of-the-art Main Battle Tanks and Infantry Vehicles. We consider this agreement a fundamental contribution to the creation of a European defense space,” Roberto Cingolani, CEO of Leonardo, said in a statement.
Final implementation of the new joint venture must still be approved by the European Commission and “the respective national competition authorities,” Rheinmetall and Leonardo noted.
American Rheinmetall Vehicles, the German firms’ U.S.-based business, is competing with a version of its Lynx platform against General Dynamics Land Systems [GD] for the U.S. Army’s XM30 program to find a Bradley replacement (Defense Daily, June 26 2023).