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Leonardo expects creation of joint venture with Rheinmetall by end of September

The Leonardo-Rheinmetall joint venture will develop and produce a new tank based on Rheinmetall's KF51 Panther MBT and a new IFV based on the German company's KF41 Lynx platform (pictured). (Rheinmetall)

Leonardo expects the creation of its land defence systems joint venture with Rheinmetall by the end of September, the Italian company's CEO and managing director, Roberto Cingolani, said during a virtual second quarter/first half of 2024 financial results presentation on 30 July.

The statement came two weeks after the company's co-general manager, Lorenzo Mariani, said the joint venture agreement contract could be signed by the end of 2024.

Cingolani noted that a 3 July memorandum of understanding (MOU) was signed by Leonardo and Rheinmetall to form a 50:50 joint venture to be the lead integrator and prime contractor for the development and production of next-generation land vehicles meeting the requirements of the Italian Army. The service is seeking replacements for its Ariete main battle tank (MBT) and Dardo infantry fighting vehicle (IFV).

Cingolani expected the joint venture to produce a new tank based on Rheinmetall's KF51 Panther MBT and a new IFV based on the German company's KF41 Lynx platform in 24–36 months, with the first five to 10 vehicles to be delivered by Rheinmetall during that period and production lasting 10–15 years. This would require an expansion in production in La Spezia and in Rheinmetall facilities in Germany, according to Cingolani. He estimated the value of the Italian market at around EUR20 billion (nearly USD21.7 billion).

He noted that the Italian workshare is 60%, including an advanced command, control, communications, computers, and intelligence (C4I) electronics suite; optronic sensors; the main gun; and weapon systems integration, as well as final assembly, homologation testing, deliveries, and logistics support.

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