Showing posts with label KNDS. Show all posts
Showing posts with label KNDS. Show all posts

Tuesday, June 11, 2024

Scrapped KNDS-Leonardo Deal Threatens Italian Leopard 2 Tank Acquisition

 




The major Italian plan to acquire Leopard tanks is at risk after the cooperation agreement between tank manufacturer KNDS and Italy’s Leonardo was abruptly terminated due to disagreements over technology transfer.

Initially announced in December 2023, the partnership between Leonardo and the German-French alliance aimed to give Leonardo a significant role in Italy’s planned purchase of 130 Leopard tanks. Leonardo intended to integrate its own components and electronics into the tanks, which were to be assembled at its facility in La Spezia, Italy. However, KNDS announced on Tuesday that Leonardo’s demands exceeded what KNDS was willing to provide.

Frank Haun, KNDS CEO, emphasized the importance of maintaining the Leopard 2 as the standard battle tank for Europe and NATO, citing its contribution to interoperability and joint combat power. He stated, “The parties did not manage to agree on configuration.”

Following KNDS’s announcement, Leonardo released its own statement acknowledging the breakdown in negotiations and reaffirming its commitment to supplying the Italian Army with a high-performing, interoperable, and modern solution. Leonardo also hinted at future collaborations with other international partners.

The failure of these talks could impact Italy's plans for a new tracked fighting vehicle and Leonardo's potential stake in KNDS, which would have supported the consolidation of the European land defense industry. Haun confirmed that discussions about Leonardo’s strategic participation in KNDS also fell through.

KNDS, a consortium of Germany’s Krauss-Maffei Wegmann and France’s Nexter, appears to prioritize national interests despite political pressure to create industry synergies in response to Russian aggression and global competition. An industry insider indicated that KNDS’s offer to Italy lacked any technology transfer, which was unacceptable given Leonardo’s capability to integrate its own systems.

A Leonardo official mentioned earlier this year that the Italian firm considered supplying components such as an electro-optical sensor, software-defined radio, the command and control system, and possibly the gun barrel for the tanks. Another source suggested that Italy might cancel its Leopard tank purchase despite parliamentary approval, possibly opting for the Rheinmetall Panther KF51, even though it is only a prototype.

Last year’s cooperation agreement between Leonardo and KNDS also included a potential €5 billion program to build 1,050 tracked fighting vehicles. Leonardo and Italy’s Iveco Defence Vehicles are currently choosing a European partner for the A2CS program, with candidates including KNDS (proposing its Boxer vehicle) and Rheinmetall (offering its Lynx).

The breakdown of the KNDS-Leonardo deal complicates future collaborations, including Italy’s entry into the European battle tank program known as the Main Ground Combat System (MGCS), which KNDS is managing.

Friday, June 7, 2024

KNDS to Establish Unit in Ukraine for Tank and Howitzer Maintenance, 3D Printing, and Artillery Shell Production





 French-German defense manufacturer KNDS, known for producing the Leopard tank and Caesar howitzer, is setting up a unit in Ukraine. This new subsidiary will collaborate with local companies to establish equipment maintenance, 3D printing of spare parts, and production of 155mm artillery shells.

Chairman Philippe Petitcolin announced the plan, which follows months of discussions, at a signing ceremony in Paris attended by Ukrainian President Volodymyr Zelenskyy, French Armed Forces Minister Sebastien Lecornu, and KNDS France CEO Nicolas Chamussy.

“The signing marks the beginning of a new era of cooperation with Ukraine, as we will have a full subsidiary of KNDS involving both the German and French parts, allowing us to work closely with Ukrainian firms,” said Petitcolin. “We are in talks with many companies.”

Ukraine currently operates 386 pieces of KNDS equipment, including Leopard tanks and Caesar howitzers, with another 250 pieces on order. This creates a significant need for support, according to Petitcolin.

CEO Chamussy signed letters of intent with Ukraine’s ENMEK to set up a maintenance center for Caesar cannons and for 3D printing spare parts, and a contract with KZVV to transfer the production of 155mm shells.

The maintenance center will not require French technicians as Ukraine is already managing Caesar maintenance using parts shipped from France. “The Ukrainians know how to do this very well,” Chamussy said.

KNDS is currently producing one Caesar truck-mounted howitzer per week, with plans to increase production to six per month, Chamussy added. “If there’s sustained demand, we can increase the pace from one per week. We know how to do more, but it depends on the demands we receive,” Petitcolin said. The company has confirmed orders for 2024, with expectations for new contracts at the upcoming Eurosatory defense show starting June 17.

Chamussy mentioned that KNDS has the capacity to increase total artillery production to 12 cannons per month. Besides the Caesar, the company also manufactures the 105mm LG1 towed artillery piece.

Petitcolin noted that ammunition production with the Ukrainian partner will start within 12 months. The next step could involve manufacturing system modules or even complete systems in Ukraine.