Rheinmetall and BAE Systems have announced the creation of a joint UK-based military vehicle design, manufacturing and support business.
The joint venture will be based at BAE Systems’ Telford facility near Birmingham, and will employ 400 people. Subject to regulatory approvals, the deal will see Rheinmetall take a 55 per cent stake in the existing BAE Systems UK based combat vehicles business, with BAE Systems retaining 45 per cent. It will be known as Rheinmetall BAE Systems Land (RBSL).
The joint venture is looking to grow the UK’s existing combat vehicle support business, and to play a major role in the delivery of the British Army’s new Mechanised Infantry Vehicle (MIV) program for which Rheinmetall’s Boxer 8×8 vehicle has been selected.
“We are excited about the potential the new Joint Venture holds for Rheinmetall, BAE Systems and ultimately our customers,” Rheinmetall Vehicle Systems Division global head, Ben Hudson said in a statement.
“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.”
BAE Systems Land UK business Managing Director, Jennifer Osbaldestin added, “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.”
The new joint venture does not include BAE Systems’ existing munitions and weapons systems businesses or its holding in the CTAI Joint Venture with Nexter.
The BAE Systems Telford facility northwest of Birmingham. (RHEINMETALL)