From two to one: Rheinmetall BAE Systems Land

Rheinmetall and BAE Systems have established a joint venture as of July 1, 2019, which will engage in the development, production, and related support services in the military land systems sector. The newly formed Rheinmetall BAE Systems Land (RBSL) is based in Telford, England. The joint venture secures around 450 jobs and is well positioned for future growth.
RBSL will play a key role in the production of the Mechanized Infantry Vehicle (MIV) for the British Army – specifically 8×8 wheeled vehicles of the Boxer type. Furthermore, it will be involved in other strategic combat vehicle programs and provide support services for a wide range of British combat vehicles.

British Defense Minister Penny Mordaunt: “This announcement is a clear commitment to the British defense industry and its global leadership in the development, production, and support of military vehicles. The partnership shows how defense is also at the heart of the prosperity agenda. The benefits of this industrial partnership will be felt in the West Midlands and throughout the defense supply chain in the United Kingdom by securing jobs, creating new export opportunities, and enhancing technical capabilities for the future."

RBSL will leverage Rheinmetall's extensive military vehicle expertise as well as the capabilities and systems brought into the joint venture by BAE Systems Land UK. These include products such as Trojan, Terrier, Warrior, bridge-laying vehicles, and the AS90 self-propelled howitzer. RBSL will have the potential to create hundreds more jobs both in Telford and in the wider supply chain.

Peter Hardisty, formerly of Rheinmetall UK, has been appointed as CEO of RBSL: “RBSL is a new company built on the strengths of BAE Systems Land UK and Rheinmetall. Our employees in Telford, Bristol, and Washington (UK) have unique expertise and extensive experience in combat vehicle technology. With new contracts, we will be able to maintain these skills, expand in the coming years, and seek new opportunities in the UK and overseas."

Carrie White from BAE Systems will also be part of the new leadership team guiding RBSL into the future. She will serve as Chief Financial Officer. Phil Simon, also from BAE Systems, will be the Operations Director. The approval of the UK Competition and Markets Authority has been granted since June 13, 2019.

About the Companies Involved

Rheinmetall Defence is a leading manufacturer of military vehicles and systems. In the United Kingdom, the company is represented by Rheinmetall Defence UK and Rheinmetall MAN Military Vehicles UK. Both companies are established suppliers to the British Ministry of Defense. They support the British Armed Forces in various areas, including vehicle systems, ammunition, and technical assistance.

BAE Systems has been a manufacturer and support provider in the British land systems business for decades. Its predecessor companies produced the Challenger 2 main battle tank, Warrior infantry fighting vehicle, and Terrier combat engineer vehicle. Currently, BAE Systems Land UK supports the UK Ministry of Defense and the British Army in the maintenance and enhancement of combat vehicles and systems. It employs over 400 people, mainly at the Telford site.

The activities of BAE Systems Land UK in the area of weapons and ammunition in the UK and within the context of the CTAI project with Nexter are not included in the new joint venture.

RHEINMETALL online: www.rheinmetall.com

BAE SYSTEMS online: www.baesystems.com