Panther instead of Leopard - Tank manufacturer Rheinmetall faces billion-euro deal with Italy
German defense conglomerate Rheinmetall is positioning itself for a billion-dollar deal from Italy for the delivery of hundreds of tanks. To do so, the company based in Düsseldorf intends to establish a joint venture with Italian defense giant Leonardo. Both companies signed the corresponding intent declaration.
Both Rheinmetall and Leonardo are among the largest defense conglomerates in Europe. The defense industry is thriving in the face of the war in Ukraine and conflicts in other regions.
Each of the shareholders intends to hold a 50% stake in the new company. It is planned to develop a battle tank and an armored personnel carrier. The armored personnel carrier is expected to be a version of Rheinmetall's Lynx armored personnel carrier, while the battle tank could be the Panther. Rheinmetall touts the Panther as its newest generation of battle tanks, but it has not yet reached series production. The new joint venture is expected to land a contract in Italy, according to media reports, which could have a volume of 20 billion Euros and a duration of more than ten years.
"Together, we want to set new standards and open the door for a new generation of high-tech combat vehicles in and for Europe," explained Rheinmetall CEO Armin Papperger. "We are addressing the Italian market as well as other partner states that have modernization needs in the area of combat systems."
Panther instead of Leopard
Originally, Leonardo was to collaborate with the German part of the European defense conglomerate KNDS, that is, with the former Krauss-Maffei Wegmann. However, this agreement for the production of Leopard battle tanks fell through. Now Rheinmetall is stepping in.
"We consider this agreement to be a fundamental contribution to the creation of a common European defense space," said Leonardo CEO Roberto Cingolani. The joint venture is not making any statements about the quantities that it intends to target. According to information from "Handelsblatt," it is about more than 550 tanks, of which more than 200 are Panther and at least 350 are Lynx.
Rheinmetall already has three subsidiaries in the southern European country with around 1,400 employees at five locations. In order for the intent declaration for the joint venture to be implemented, the approval of relevant regulatory authorities is required.
Full order books at Rheinmetall
Since the outbreak of the Ukraine conflict, Rheinmetall has grown significantly. Recently, the weapons manufacturer received framework contracts from the German military. One is for artillery ammunition worth up to 8.5 billion Euros and the other for military trucks worth up to 3.5 billion Euros. With the Italian mega-contract, the already steep growth trajectory would be further intensified. Leonardo generated a turnover of more than 15 billion Euros last year with its more than 50,000 employees. Rheinmetall achieved a turnover of 7.2 billion Euros in 2023 with around 34,000 employees. The order books of the Düsseldorf-based company are as full as they have ever been.
- The proposed joint venture between Rheinmetall and Leonardo, both prominent defense companies based in Europe, aims to develop a new generation of combat vehicles.
- Düsseldorf-based Rheinmetall is actively pursuing a large-scale order from Italy for the delivery of hundreds of tanks, potentially valued at 20 billion Euros, through this joint venture.
- This strategic move by Rheinmetall comes as the defense industry continues to thrive in the face of conflicts in Ukraine and other regions.
- The joint venture intends to develop a battle tank, possibly the Panther, which Rheinmetall advertises as its latest generation of battle tanks, and an armored personnel carrier, likely a version of Rheinmetall's Lynx.
- Leonardo, an Italian defense giant, views this joint venture as a significant step towards creating a common European defense space.
- Despite not disclosing specific quantities, media reports suggest that the joint venture targets more than 550 tanks, with more than 200 being the Panther and at least 350 being Lynx.
