France and Germany Take Key Step Forward in MGCS Tank Replacement Project

France and Germany Take Key Step Forward in MGCS Tank Replacement Project

(IN BRIEF) On January 23, 2025, in Paris, representatives from KNDS Deutschland, KNDS France, Rheinmetall Landsysteme, and Thales signed a shareholder agreement for the MGCS Project Company GmbH. This agreement is a major step forward in the MGCS program, which aims to replace the Leopard 2 and Leclerc tanks with a new combat system by 2040. The project company, based in Cologne, will be equally owned by the four industrial partners, with each holding a 25% stake, and the workshare will be split 50% between Germany and France. The creation of the MGCS Project Company follows the momentum of a Letter of Intent signed by the French and German governments in 2024.

(PRESS RELEASE) DÜSSELDORF, 25-Jan-2025 — /EuropaWire/ — On Thursday, January 23, 2025, in Paris, representatives from KNDS Deutschland, KNDS France, Rheinmetall Landsysteme, and Thales formalized their commitment to the MGCS Project Company GmbH by signing the shareholder agreement. The event was attended by both French Defense Minister Sébastien Lecornu and German Defense Minister Boris Pistorius. The Main Ground Combat System (MGCS) initiative aims to replace the existing Leopard 2 and Leclerc main battle tanks with a next-generation, cross-platform combat system by 2040.

This agreement marks a pivotal milestone in the establishment of the MGCS Project Company, a key entity in driving forward the ambitious project. After securing a contract with the Federal Office of Bundeswehr Equipment, Information Technology, and In-Service Support (BAAINBw), the company will act as the industrial prime contractor, overseeing the next phase of the MGCS program. The focus will be on refining the system’s core concepts and technological foundations. The company, which will be based in Cologne, Germany, will be jointly owned by the four partners, with each holding a 25% stake. The workshare between Germany and France will be equally split, with each nation contributing 50%.

The industrial partners in the MGCS project expressed their enthusiasm for the agreement, which builds on the momentum generated by the signing of a Letter of Intent (LOI) by the French and German governments in spring 2024.

About KNDS:

KNDS (KMW+NEXTER Defense Systems) is the result of the association of Krauss-Maffei Wegmann and Nexter, two of the leading European manufacturers of military land systems based in Germany and France.

KNDS forms a Group of around 9,000 employees, with a 2023 turnover of 3.3 billion euro, an order backlog of around 16 billion euro and incoming orders of 7.8 billion euro. The range of its products includes main battle tanks, armored vehicles, artillery systems, weapons systems, ammunition, military bridges, customer services, battle management systems, training solutions, protection solutions and a wide range of equipment.

The formation of KNDS represents the beginning of consolidation in land defense systems industry in Europe. The strategic alliance between KMW and Nexter enhances both groups’ competitiveness and international positions, as well as their ability to meet the needs of their respective national army. In addition, it offers to its European and NATO customers the opportunity of increased standardization and interoperability for their defense equipment, with a dependable industrial base.

KNDS headquarters are based in Amsterdam.

About Rheinmetall:

Rheinmetall AG of Duesseldorf, a listed company, is a leading international defence contractor and a driver of future-oriented technological and industrial innovation in civil markets. With over 31,000 employees and 171 sites worldwide, Rheinmetall generated sales of €7.2 billion in 2023. With its technologies, products and systems, the company creates the indispensable basis for peace, freedom and sustainable development: security. Rheinmetall Landsysteme GmbH is part of the Rheinmetall Division Vehicle Systems Europe and is one of the leading land system manufacturers.

About Thales:

Thales (Euronext Paris: HO) is a global leader in advanced technologies specialized in three business domains: Defence, Aerospace and Cyber & Digital. It develops products and solutions that help make the world safer, greener and more inclusive.

The Group invests close to €4 billion a year in Research & Development, particularly in key innovation areas such as AI, cybersecurity, quantum technologies, cloud technologies and 6G.

Thales has close to 81,000 employees in 68 countries. In 2023, the Group generated sales of €18.4bn.

Media Contacts:

KNDS:
guillem.monsonis@knds.fr

Rheinmetall:
Oliver Hoffmann
Head of Press and Public Relations
Phone: +49 211 473-4748
Fax: +49 211 473-4157

Thales:
camille.heck@thalesgroup.com

SOURCE: Rheinmetall