Rheinmetall-Leonardo form JV for Tank Production: Rome, Italy – October 16, 2024 – In a move that promises to reshape the European tank production landscape, defense giants Leonardo and Rheinmetall have announced the formation of a joint venture, Leonardo Rheinmetall Military Vehicles (LRMV). This strategic partnership aims to develop and produce advanced military combat vehicles, initially for the Italian Army and subsequently for global markets.
The 50:50 joint venture will be headquartered in Rome, Italy, with operational headquarters in La Spezia. The companies anticipate that 60% of the joint venture’s activities will be carried out within Italy, underscoring the significance of the partnership for the country’s defense industry.
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Leonardo-Rheinmetall Tank Joint Venture
KF-51 Panther MBT.
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The primary focus of LRMV will be to equip the Italian armed forces with cutting-edge combat vehicles: the Italian Main Battle Tank (MBT) and the Lynx as an Armoured Infantry Combat System (AICS). Building upon the success of Rheinmetall’s Panther KF51, the new MBT will replace the Ariete in the Italian army. Meanwhile, the Lynx infantry fighting vehicle will serve as the technological foundation for the AICS program, which involves the procurement of over 1,000 armored combat systems in various configurations.
Beyond the Italian market, LRMV also envisions significant export opportunities for its products. The joint venture’s combination of Leonardo’s expertise in mission systems and electronics and Rheinmetall’s proven track record in tank design and production is expected to create highly competitive offerings that appeal to international customers.
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Rheinmetall’s Lynx IFV (Official Photo).
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Armin Papperger, CEO of Rheinmetall AG, expressed his enthusiasm for the partnership: “We are creating a new heavyweight in European tank production. Leonardo and Rheinmetall, two leading European suppliers of defense technology, are joining forces to carry out ambitious projects. We are primarily addressing the Italian market, but we will also be targeting other partner nations which are in need of modernizing their combat systems in the future.”
Roberto Cingolani, CEO of Leonardo, said: “This is a significant step towards the creation of a European defense system based on specialized shared platforms. Rheinmetall and Leonardo aim at developing state-of-the-art technologies able to compete at international level.”
The joint venture’s establishment is expected to be finalized by the first quarter of 2025, subject to regulatory approvals. The agreement outlines a collaborative approach to development and production, with a 50:50 sharing of labor and a strong emphasis on Italian-based activities.
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Rheinmetall’s existing presence in Italy, with three subsidiaries and around 1,500 employees, provides a solid foundation for the joint venture. The partnership is poised to not only bolster Italy’s defense capabilities but also to strengthen European cooperation in the field of military technology. As LRMV moves forward, the world will be watching with anticipation to see how this new European tank powerhouse will shape the future of armored combat vehicles.
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