Rheinmetall and Italian firm Leonardo establish collaborative ventures
Defense giants Rheinmetall from Germany and Leonardo from Italy have formally initiated the formation of a collaborative venture, dubbed Leonardo Rheinmetall Military Vehicles (LRMV), to boost their tank manufacturing capabilities within Europe. Both firms will hold equal stakes of 50% in this joint endeavor, as per their joint announcement. Assuming regulatory approvals, the official establishment of LRMV is projected to occur by January.
The venture's headquarters will be situated in Rome, with a primary operation center situated in La Spezia. Approximately 60% of the venture's operations will be carried out in Italy. The collaboration between Rheinmetall and Leonardo was prearranged, with both parties signing a related memorandum of understanding in July. The agreement encompasses the advancement and promotion of a cutting-edge primary battle tank and various other military vehicles.**
Rheinmetall CEO Armin Papperger expressed his thoughts, saying, "We're forming a new force to be reckoned with in European tank production." Initially, the focus will be on the Italian market, but it eventually aims to cater to "other partner countries in need of modernization for their combat systems." Leonardo CEO Roberto Cingolani framed it as a "notable stride towards the emergence of a European defense system."
The new joint venture, Leonardo Rheinmetall Military Vehicles (LRMV), will not only bolster tank manufacturing capabilities in Europe but also engage in joint projects for the advancement of primary battle tanks and other military vehicles. As part of this joint endeavor, both Rheinmetall and Leonardo will share equal stakes in various joint ventures.
