Rheinmetall and BAE Systems have announced that they have signed an agreement to create a joint UK based military vehicle design, manufacturing and support business.
Rheinmetall will purchase a 55% stake in the existing BAE Systems UK based combat vehicles business, with BAE Systems retaining 45%.
The firms say that 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 for the new Joint Venture to play a major role in the delivery of the British Army’s new Mechanised Infantry Vehicle (MIV) and other strategic combat vehicles programmes.”
Jennifer Osbaldestin, Managing Director of BAE Systems Land UK business, said:
“We are committed to evolving our combat vehicles business so that we better serve our customers’ future interests.
Joining forces with Rheinmetall in the UK provides renewed purpose for our vehicles business and allows us to deliver products, services and technology that help land forces excel in their vital roles.
We look forward to working together to ensure the Joint Venture is a trusted supplier to the British Army and our international customers.”
Ben Hudson, Global Head of Rheinmetall’s Vehicle Systems Division, said:
“We are excited about the potential the new Joint Venture holds for Rheinmetall, BAE Systems and ultimately our customers. The combined capabilities of our two great companies will offer our customers a comprehensive portfolio of military vehicles and associated technologies both now and into the future.
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.”
The new Joint Venture will be headquartered at BAE Systems’ facility in Telford, England.