Rheinmetall heading for major tank order
The cash rings at Rheinmetall: The defense giant secures three major orders with billions in volume within a few weeks. Italy intends to order more than 500 tanks from the German manufacturer.
Rheinmetall could land the biggest order in its corporate history on land. The Italian government intends to order the Rheinmetall-developed combat tank Panther, as well as the infantry fighting vehicle Lynx, reported "Handelsblatt" citing industry circles. The contract with a duration of 15 years is expected to have a volume of around 20 billion Euros. A portion of this is intended for the maintenance of the combat vehicles.
According to plans, Italy intends to purchase at least 350 infantry fighting vehicles Lynx and more than 200 Panther combat tanks. Rheinmetall declined to comment on the report, but did not deny it either, said a spokesperson. "We will make a statement at the appropriate time." Rheinmetall's shares rose by 3.4 percent in the wake of the news.
While the Panther can be remotely controlled by drones to support combat situations, the Lynx is modularly designed. The combat vehicle can be equipped with different weapons as if it were a building kit.
For the execution of the contract, Rheinmetall could fall back on a cooperation with the Italian defense conglomerate Leonardo, reported the paper further. In large orders in the defense industry, it is usual to try to process a portion of the volume in the country of the contractor. Insiders in Italy had already reported that Rheinmetall and Leonardo were exploring a cooperation in tanks. Leonardo CEO Roberto Cingolani had previously said his company wanted to forge European alliances.
Italy intends to strengthen its ground forces and has already extended its feelers towards the defense conglomerate KNDS and wanted to purchase Leopard-2 tanks. However, an agreement was dissolved by the Roman government because KNDS wanted to build the tanks mainly in Germany.
For Rheinmetall, it is the third billion-dollar deal within a few weeks. In June, the Bundeswehr had already ordered ammunition worth 8.5 billion Euros, and just a few days ago, the contract for military transporters was signed - also by the Bundeswehr. The volume amounts to 3.5 billion Euros.
This significant order from Italy could significantly contribute to Rheinmetall's armor division, bolstering the German defense industry's arms exports. The Italian military's planned acquisition of the Panther combat tanks and Lynx infantry fighting vehicles, estimated to be worth around 20 billion Euros, will undoubtedly have a substantial impact on Rheinmetall's economy. More overtly, this collaboration with Leonardo in tank production could potentially open doors for further exports in the global defense market.
