Leonardo & Rheinmetall To Finalise Ground Systems Joint Venture By September

This partnership, which was first outlined in a memorandum of understanding signed last month, will see both companies owning an equal 50 per cent share in a new entity dedicated to advancing European land defence systems

The CEO of Leonardo, the Italian defence firm, Roberto Cingolani, has announced that the company aims to finalise a joint venture with the German company Rheinmetall by the end of September.

This partnership, which was first outlined in a memorandum of understanding signed last month, will see both companies owning an equal 50 per cent share in a new entity dedicated to advancing European land defence systems.

The primary goal of this alliance is to develop and eventually commercialize a new main battle tank (MBT) and a new platform for the Armored Infantry Combat System (AICS) within the framework of the Italian Army’s ground systems programs. The joint venture is expected to play a pivotal role in the industrial development of these next-generation defence platforms.

According to Cingolani, the collaboration between Leonardo and Rheinmetall represents a unique opportunity to leverage technology and industrial synergies in the development of advanced MBTs and infantry vehicles. Italy plans to use these new platforms to replace its ageing MBT Ariete and infantry fighting vehicle (IFV) Dardo.

The future battle tank will be based on Rheinmetall’s KF51 Panther, while the new IFV will be derived from the German company’s KF41 Lynx platform. Leonardo’s CEO has indicated that the first deliveries of these vehicles, expected to range between five and ten units, could occur within the next two to three years, with production potentially spanning 10 to 15 years.

Cingolani also highlighted that this joint venture is seen as a significant step towards creating a unified European defence space, a sentiment echoed during previous negotiations between Leonardo and KNDS, the consortium formed by the German KMW and French Nexter, developers of the Leopard 2 battle tank.

Leonardo’s contribution to the project is expected to be substantial, with Cingolani estimating that the Italian share of the work could reach 60 per cent.

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