Significant developments have unfolded as #Leonardo SpA and the Franco-German consortium, #KNDS, recently terminated their negotiations, initially set in motion in December 2023. These discussions were pivotal in establishing a partnership between #Leonardo's Defence Division and #KNDS, specifically its German component, #KraussMaffeiWegman (i.e. KNDS Germany), to outline Italian involvement in the Main Battle Tank programme, in preparation for the Italian Army's adoption of the #Leopard 2A8IT tank.
The negotiations were crucial in defining the Italian technological and industrial contribution to the production of approximately 270 units, a plan intended for the Italian Army (130 MBTs and 140 derived special vehicles). Parliamentary committees have already approved the programme, which is included in the 2023-25 #DPP (i.e. "Documento Programmatico Pluriennale per la Difesa per il triennio 2023-2025). It is planned to be funded with 8.24 billion euros over the next 15 years, 100 million of which will be financed this year.
However, the German company's hesitance to reach an agreement in this aspect had been a subject of speculation for some time, potentially posing a significant challenge to the Italian Army's MBT programme. In essence, the two companies disagreed on the "Italianisation" process of the tank, as mandated by the programme's authorisation decree approved by the Italian Parliament. Yet, in its "commitment to supporting the Italian Army", KNDS seems convinced that an off-the-shelf offer of Leopard 2A8 to the Italian Army could still be on the table. We shall see how this evolves...
With the current situation, new possibilities emerge for the acquisition of a new MBT and for the #AICS. Among the potential options, the KF51 #Panther, unveiled by #Rheinmetall in 2022 at Eurosatory, stands out as a credible candidate. This tank is designed to meet multi-domain requirements, ready for integration with drones and loitering munitions, with a weight that appears suitable and offers promising growth potential.
Another excellent alternative would be the South Korean #K2 #BlackPanther, already ordered in large numbers by #Poland (both off-the-shelf and for domestic production) and #Turkey in its local #Altay configuration and evaluated by #Romania and #Norway. However, this option would diminish the substantial premises of industrial operations at both the European and #NATO levels.
For the #AICS, the candidates remain the evolved #CV90 by #BAESystems and the KF31 #Lynx by Rheinmetall. Clearly, in these circumstances, a #Panther+#Lynx "package" would make a great deal of sense ("hitting two doves with one stone"), with excellent growth prospects for the Italian armoured land sector and significant operational returns for the Italian Army. #Hungary has ordered both platforms and has attracted the interest of #Ukraine. We should also keep an eye on what could emerge from the incoming #Eurosatory2024.
Negotiations between KNDS, a leading European manufacturer of military land systems, and Leonardo, an Italian aerospace and defence company, have officially ended without agreement. The two companies had been in discussions since December 2023 to explore a potential strategic partnership aimed at enhancing European defence capabilities.
The negotiations aimed at two primary objectives: forming a strategic alliance between Leonardo’s defence division and KNDS, and jointly developing and producing the Leopard 2A8 battle tank for the Italian Ministry of Defence. Additionally, the collaboration sought to address the Italian procurement program for an infantry fighting vehicle.
Frank Haun, CEO of KNDS N.V., commented on the situation: “With 18 European user countries, Leopard 2 is the battle tank standard of our continent and of NATO. It is more important than ever to safeguard this standard, which makes a significant contribution to the interoperability and joint combat power of the European and NATO armies. The parties did not manage to agree on configuration and consequently, talks about Leonardo’s strategic participation in KNDS have also fallen short. Yet KNDS continues to be committed to support the Italian Army.”
Find out more: https://lnkd.in/di6ihuQB
#KNDS #Leonardo #Italy #Germany #Europe #Leopard2A8 #MGCS #defence #industry #military #armedforces
KNDS and Leonardo abandon talks on strategic partnership
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