Rheinmetall & BAE Systems: Land Systems Joint Venture in the United Kingdom

Rheinmetall and BAE Systems have decided to establish a joint venture in the military land systems sector in the UK, engaging in development, production, and related support services. An agreement to this effect has now been signed. The joint venture will operate under the name Rheinmetall BAE Systems Land (RBSL) and will be based at the current BAE Systems manufacturing facility in Telford, England. It is subject to regulatory approval, which is targeted for the first half of 2019. Rheinmetall will hold 55% of the shares in the new company, with BAE Systems holding 45%.

This creates a new European market leader that aims to secure a top position in the international competition for military vehicles.

The joint venture will strengthen and expand industrial capacities in the UK. The new company will secure approximately 400 jobs, key technologies, and technological skills in the country. This will establish an industrial nucleus in the UK for the future modernization of land forces, particularly in wheeled and tracked vehicles, as well as combat systems.

Key Role in Supplying the British Army

The new company is expected to play a key role in delivering the Mechanised Infantry Vehicle (MIV) – 8x8 wheeled vehicles of the Boxer type – to the British Army, as well as engaging in other strategically important combat vehicle programs. Additionally, the company will provide support services for a wide range of British combat vehicles.

The name Rheinmetall is associated with a large number of widely used military vehicles such as Puma, Boxer, Fuchs, and Marder, as well as a broad range of military trucks. BAE Systems is known for products like Warrior, Trojan, Terrier, bridge-laying vehicles, and the AS90 self-propelled gun. With the comprehensive technological portfolio that BAE Systems brings to the new venture, RBSL is expected to be a substantial part of Rheinmetall's Vehicle Systems Division in the global market.

Extensive Portfolio

Ben Hudson, Managing Director of the Rheinmetall Vehicle Systems Division and member of the Rheinmetall Defence executive board: "We are very excited about the potential that this new company offers to our customers and ourselves. By combining the capabilities of BAE Systems and Rheinmetall, we can offer our customers an extensive portfolio of military vehicles and related technologies – both now and in the future. We are proud to invest in the United Kingdom and anticipate substantial growth in business and at the Telford manufacturing facility over the coming years."

Jennifer Osbaldestin, Managing Director of BAE Systems Land UK: "Our goal is to further develop the combat vehicle business to better serve the future interests of our customers. Combining our strength with Rheinmetall in the UK elevates our vehicle business to a new level. This will enable us to continue offering products, services, and technologies that help land forces fulfill their important role. We look forward to a partnership where we will be a reliable partner to the British Army and our international customers."

Rheinmetall: Established Suppliers

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

BAE Systems has been a manufacturer and support provider in the UK land systems business for decades. Its predecessor companies produced the Challenger 2 main battle tank, the Warrior infantry fighting vehicle, the Terrier combat engineer vehicle, as well as prototypes of the Boxer. Currently, the company supports the UK Ministry of Defence and the Army in the maintenance and upgrade of combat vehicles and bridging systems. It employs around 400 staff, mainly at the Telford site.

The activities of BAE Systems in the field of weapons and ammunition in the UK, as well as the CTAI project with Nexter, are not included in the new joint venture.

RHEINMETALL online: www.rheinmetall.com

BAE SYSTEMS online: www.baesystems.com