Germany’s Rheinmetall and British defense giant BAE Systems will create a joint military vehicle design, manufacturing and support business based in the United Kingdom, Rheinmetall said on Monday, January 21.
The two companies announced in a Monday, January 21 press release that they signed an agreement for the joint venture, Rheinmetall BAE Systems Land, based at BAE’s facility in Telford, England.
Rheinmetall will purchase a 55 percent stake in BAE’s combat vehicle business, with the British company retaining 45 percent. BAE will earn £28.6 million (€32.4 million) from the sale to sustain about 400 jobs.
Regulatory approvals are expected to be completed in the first half of 2019, the companies said.
The proposed Joint Venture does not include BAE Systems’ munitions and weapons systems businesses or its holding in the CTAI Joint Venture with Nexter.
The new venture is intended to play a major role in the delivery of the British Army’s new mechanized infantry vehicle and other strategic combat vehicle programs. RBSL will also contribute to Rheinmetall’s various global vehicle pursuits and contracts, the company said.
The MIV is the British Army’s new 8×8 wheeled armored vehicle. In September, Defence Minister Stuart Andrew announced that Artec, the industrial group in which Rheinmetall owns a controlling stake, would complete supplier selection and confirm their proposal to manufacture and support Boxer in the U.K. The British Army rejoined the Boxer program in March.
The Army intends to make an initial purchase of 500 vehicles.