Rheinmetall and BAE Systems have signed an agreement to create a joint UK based military vehicle design, manufacturing and support business.
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, Rheinmetall said in a statement Monday.
Rheinmetall will purchase a 55 percent stake in the existing BAE Systems UK based combat vehicles business, with BAE systems retaining 45 percent. The new Joint Venture will be headquartered at BAE Systems’ facility in Telford, England.
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).
While initially focused on these major UK programmes, 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. The combination of Rheinmetall’s military vehicles technology and products with the additional capabilities and products brought to the Joint Venture by BAE Systems, such as Trojan, Terrier, Warrior, military bridging and the AS90 self-propelled artillery system will be helpful.