Rheinmetall and BAE Systems have signed an agreement to create a joint UK based military vehicle design, manufacturing and support business.
The new joint venture will be headquartered at BAE Systems’ facility in Telford, England and will sustain more than 400 jobs in the UK, as well as preserve key technology and engineering skills.
Rheinmetall will purchase a 55 per cent stake in the existing BAE Systems UK based combat vehicles business, with BAE Systems retaining 45 per cent.
The establishment of the new joint venture is subject to regulatory approvals which are anticipated to be completed in the first half of 2019.
Once the approvals have been completed, the joint venture will be known as Rheinmetall BAE Systems Land (RBSL).
In addition to managing and growing the existing combat vehicle support business, the intent is to play a major role in the delivery of the British army’s new mechanised infantry vehicle (MIV) and other strategic combat vehicles programmes.
While initially focused on these major UK programmes, RBSL will also form an integral part of Rheinmetall’s vehicle systems division and will participate in and contribute to various global military vehicle pursuits and contracts.
Ben Hudson, global head of Rheinmetall’s vehicle systems division said the company is excited about the potential the new joint venture holds for Rheinmetall, BAE Systems and ultimately our customers.
“We are proud to invest in the UK and expect to substantially grow the current business and the Telford manufacturing facility over the coming years.”
Jennifer Osbaldestin, managing director of BAE Systems land UK business, said joining forces with Rheinmetall in the UK provides renewed purpose for the company’s vehicles business and allows it to deliver products, services and technology that help land forces excel in their vital roles.