Leonardo and Rheinmetall announce joint venture on land defence systems

The Leonardo-Rheinmetall joint venture will develop and commercialise a new MBT to replace the Italian Army's Ariete tank (pictured) and a new Lynx platform to replace the service's Dardo IFV. (Italian MoD)

Leonardo and Rheinmetall signed a memorandum of understanding (MOU) on 3 July to establish a 50:50 joint venture on land defence systems, the two companies announced in a joint press release later the same day. The companies said the agreement was “aimed at developing a European industrial and technological approach in the field of land defence systems”.

They plan the industrial development followed by the commercialisation of a new main battle tank (MBT) and a new Lynx platform for the Italian Army's Armoured Infantry Combat System (AICS). The service is seeking replacements for its Ariete MBT and Dardo infantry fighting vehicle (IFV).

Rheinmetall CEO Armin Papperger said, “Together we want to set new standards and open the door to a new generation of state-of-the-art combat vehicles in and for Europe. In doing so, we are addressing the Italian market as well as other partner countries that have a need for modernisation in the field of combat systems.”

Leonardo CEO Roberto Cingolani expected technology and industrial synergies between the two companies in the development of state-of-the-art MBTs and infantry vehicles and described the MOU as “a fundamental contribution to the creation of a European defence space”.

Headquartered in Italy, the joint venture will be the lead system integrator and prime contractor for the Italian MBT and AICS programmes, with Leonardo developing and producing mission systems and electronics suites for and integrating weapons into the two vehicles.