Franco-German Defense Industry Reaches Key Milestone with Establishment of MGCS Project Company

Franco-German Defense Industry Reaches Key Milestone with Establishment of MGCS Project Company

(IN BRIEF) The Franco-German MGCS defense initiative has progressed with the official founding of the MGCS Project Company GmbH, a joint industrial entity formed by KNDS Deutschland, KNDS France, Rheinmetall Landsysteme, and Thales. Based in Cologne and led by Stefan Gramolla, the company will serve as the prime contractor for the next development phase of the Main Ground Combat System. The program is set to replace Leopard 2 and Leclerc tanks by 2040 with an advanced multi-platform system. The establishment of MPC marks a significant advancement in bilateral defense cooperation and underscores Europe’s commitment to innovation and interoperability in land-based military systems.

(PRESS RELEASE) DÜSSELDORF, 17-Apr-2025 — /EuropaWire/ — The collaborative Franco-German initiative to develop the next-generation Main Ground Combat System (MGCS) has officially advanced to a new phase. On 10 April 2025, following clearance from the German Federal Cartel Office, four leading defense manufacturers—KNDS Deutschland, KNDS France, Rheinmetall Landsysteme, and Thales—completed the formal establishment of the MGCS Project Company GmbH (MPC), headquartered in Cologne.

Stefan Gramolla, a seasoned engineer and Colonel in the German Armed Forces Reserve, has been appointed Managing Director of the new company.

The formation of MPC signals an important leap forward for the MGCS program, which aims to replace the Leopard 2 and Leclerc tanks with a modern, multi-platform combat system by 2040. Once a forthcoming contract is agreed upon with the Bundeswehr’s procurement office (BAAINBw)—acting on behalf of France and Germany via a joint project team—the company will become the lead industrial contractor overseeing the next stage of MGCS development. This phase will focus on defining core system concepts and unifying key technologies.

The MGCS initiative is a flagship European defense program championed by both governments, positioning MPC to lead innovation in land combat capabilities for decades to come.

About KNDS:

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

KNDS forms a Group of more than 10,000 employees, with a 2024 turnover of 3.8 billion euro, an order backlog of around 23.5 billion euro and incoming orders of 11.2 billion euro. The range of its products includes main battle tanks, armored vehicles, artillery systems, weapons systems, ammunition, robotics, 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 (now KNDS Deutschland) and Nexter (now KNDS France) 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.

Press contact:

guillem.monsonis@knds.fr

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 €9.8 billion in 2024. 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.

Media contact:

oliver.hoffmann@rheinmetall.com

About Thales:

Thales (Euronext Paris: HO) is a global leader in advanced technologies for the Defence, Aerospace, and Cyber & Digital sectors. Its portfolio of innovative products and services addresses several major challenges: sovereignty, security, sustainability and inclusion.

The Group invests more than €4 billion per year in Research & Development in key areas, particularly for critical environments, such as Artificial Intelligence, cybersecurity, quantum and cloud technologies.

Thales has more than 83,000 employees in 68 countries. In 2024, the Group generated sales of €20.6 billion.

Media contact:

camille.heck@thalesgroup.com

Media Contact:

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

SOURCE: Rheinmetall