BAE wins $2bn Czech contract

BAE Systems (Britain’s largest defence company) has been awarded a contract worth $2.2 billion by the Czech Republic to supply 246 CV90 MkIV Infantry Fighting Vehicles in seven different variants.

The agreement will provide highly versatile vehicles for Czech soldiers, while giving the Czech industry an important role in the program, the government stated.

Tommy Gustafsson Rask, managing Director of BAE Systems Hagglunds in Ornskoldsvik (Sweden), said: “As a ninth member of CV90 User group, the Czech Republic will benefit from the combat-proven, infantry fighting vehicle that offers a unique combination of mobility and firepower with protection and future growth. This contract is also a major win for Czech Industry that will last decades.”

CV90s are being developed and delivered by a partnership between Czech industry and the Czech Ministry of Defence to meet their requirements and maintain national sovereignty in the Czech Republic. The Czech partners are expected to deliver 40% of the value of the acquisition in development, assembly and production contracts. This does not include value added tax.

BAE Systems Hagglunds produced more than 1,400 CV90s, in 17 variants, for European countries. Five of these are Nato member states. The CV90 was selected by the Slovakian armed forces to join the Czech Republic, the eight and ninth countries in the CV90 User group.

The London-listed BAE Systems shares closed at 951 3/4p down 12 3/4p or 1.3 percent.