Rheinmetall and BAE Systems will create a joint UK based military vehicle design, manufacturing and support business that will sustain over 400 jobs in the UK.
The new Joint Venture, to be headquartered at BAE Systems’ facility in Telford, England, will be known as Rheinmetall BAE Systems Land (RBSL) and will play a major role in the delivery of the British Army’s new Mechanised Infantry Vehicle (MIV) and other strategic combat vehicles programmes.
As part of the agreement, Rheinmetall will purchase a 55% stake in the existing BAE Systems UK based combat vehicles business, with BAE Systems retaining 45%.
In addition to managing and growing the existing combat vehicle support business, 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 RBSL will combine Rheinmetall’s military vehicles technology with BAE’s world-class capabilities and products to create a European market leader in the military vehicle sector.
“We are excited about the potential the new Joint Venture holds for Rheinmetall, BAE Systems and ultimately our customers,” Mr Hudson stated.
“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.”
Jennifer Osbaldestin, Managing Director of BAE Systems Land UK business, said the new Joint Venture is subject to regulatory approvals which are anticipated to be completed in the first half of 2019.
“We are committed to evolving our combat vehicles business so that we better serve our customers’ future interests,” Ms Osbaldestin continued,
“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.”