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.

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.

Czech Republic wants to piggyback on German Leopard 2A8 tank buy, Defense News reports

 Czech Defence Minister Jana Černochová has revealed plans for joint negotiations with Germany to acquire Leopard 2A8 tanks, enhancing the procurement process in terms of pricing and delivery time. The collaboration is expected to yield clearer outcomes in the coming year. Previously, the Czech Republic donated T-72 tanks to Ukraine in 2022 and engaged in Berlin's "Ringtausch" program, receiving Leopard 2A4s to maintain combat capabilities. Negotiations for the purchase of up to 77 Leopard 2A8 tanks have been ongoing since July. Additionally, Černochová outlined military acquisition priorities, including the intention to finalize a deal for two C-390 Millennium aircraft from Embraer in 2024 and the imminent conclusion of a contract for 24 F-35s for the Czech Air Force within weeks. These procurement initiatives signify the Czech Republic's commitment to modernizing its military capabilities through strategic partnerships and acquisitions.

Here is the link to the original article:

https://www.defensenews.com/global/europe/2023/12/20/czech-republic-wants-to-piggyback-on-german-leopard-2a8-tank-buy/

Lithuania's Stalwart Support: Restored Leopard 2 Tanks Ready for Ukraine Deployment

 In a resounding display of solidarity, Lithuania has successfully restored Leopard 2 tanks damaged on the frontlines and is gearing up to transfer them to Ukraine. The Ministry of Defense proudly announced the completion of repairs, showcasing the tanks at Lithuania's Army training ground in Gaižiūnai. This marks a significant stride in Lithuania's unwavering commitment to bolster Ukraine's defense capabilities.

The repaired Leopard 2 tanks, a potent addition to Ukraine's military prowess, are set to arrive next month, reinforcing Lithuania's proactive role in supporting Ukraine's struggle against Russia. Lithuanian Defense Minister Arvydas Anušauskas, seated atop one of the tanks, expressed his admiration, stating, "What can I say?... A powerful tank."

These repaired tanks are part of a joint venture called Little Defense Services (LDS), established by major European military equipment manufacturers Rheinmetall and Krauss-Maffei Wegmann (KMW). LDS commenced its tank repair operations in October and is expected to continue until the end of next year, underlining Lithuania's commitment to aiding Ukraine's defense efforts.

Lithuania, standing as the sole European nation tasked with the repair of Leopard 2 A6 and A5 tanks, has shown readiness to accept as many tanks as required. Sebastian Dietz, CEO of Lithuania Defense Services, emphasized the diverse combat-related damages addressed during the repairs, including direct hits, mines, drone attacks, and water-related challenges.

This effort follows Lithuania's proactive steps to facilitate the repair and return of the PzH 2000 Self-Propelled Howitzer to Ukraine, another crucial military asset actively involved in combat operations. The country has also contributed financially to the Ukraine Solidarity Fund, aiming to support Ukraine's reconstruction efforts.

As of June 2023, Lithuania has already provided close to one billion euros in military, financial, humanitarian, and reconstruction support, making it the leading global contributor in terms of the percentage of its GDP. This comprehensive assistance includes the transfer of Mi-8 helicopters, L-70 anti-aircraft guns, M113 armored personnel carriers, millions of rounds of ammunition, and grenade launcher ammunition to Ukraine.

Emphasizing ongoing preparations for the impending winter season, Lithuania plans to supply generators and essential equipment to help Ukraine endure the challenging months ahead. The country's multifaceted contribution goes beyond material support, extending to expert advice, international fund contributions, training programs, and participation in NATO-led operations.

In essence, Lithuania's commitment to Ukraine exemplifies a holistic approach, showcasing a dedicated alliance in the face of geopolitical challenges.