Italian military signs €20bn deal for new tanks

Two of Europe’s largest arms companies will form a joint venture worth €20 billion to build tanks. Leonardo and Rheinmetall announced that they would jointly develop, industrialise, and market a fourth generation main battle tank to be used by the Italian Army.

Leonardo, the Italian aerospace and defence group, was formerly called Finmeccanica. In Britain, it is most well-known for its former helicopter assembly plant AgustaWestland. Rheinmetall was a key player in arming Germany during the two World Wars of the 20th Century.

The 15-year contract is set against the backdrop of Europe’s rearmament following the Russian invasion in Ukraine and aims to manufacture hundreds of combat vehicles and tanks. The German and Italian press reported that orders from Italy may include up to 1,000 Lynx armored fighting vehicles and over 280 Panther main combat tanks.

” Leonardoand Rheinmetallare joining forces to achieve ambitious projects, to set new standards, and to open the doors to a next generation of high-tech combat vehicles for Europe and in Europe,” Armin Pappger, 61 years old, chief executive officer of Rheinmetall said. In doing so, Rheinmetall is addressing both the Italian market and other partner countries who have a requirement for modernisation of combat systems.

Roberto Cingolani (62), the CEO of Leonardo, stated that the joint venture would be a “unique opportunity” to develop the latest main battle tanks and vehicles for European allies. The venture will have its headquarters located in Italy, and “define the road map” for participation in the future European Main Ground Combat System”, originally developed by France after Britain left the European Union. It is intended to replace the nations’ ageing tanks.

Fiat, an Italian automobile brand, manufactured tanks for the Italian Army during the 20th Century. The third generation of Ariete tanks in Italy was introduced 30 years ago by Iveco truck company and Oto Melara subsidiary, Leonardo.

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