The Italian government plans to procure over 500 Panther main battle tanks and Lynx infantry fighting vehicles from Rheinmetall.
It would be the largest-ever contract for the German arms manufacturer, around 20 billion euros ($21.50 billion), German business daily Handelsblatt reported.
It includes the procurement of 350 Lynx vehicles and 200 Panther tanks over a 15-year period.
Rheinmetall-Leonardo Joint Venture
The development follows Rheinmetall and Italian defense group Leonardo announcing a planned joint venture to build a new main battle tank and a Lynx infantry fighting vehicle for the Italian Army.
The tank will be based on the Panther’s basic design, with Leonardo developing and producing the vehicles’ mission systems, electronics suite, and weapons integration “according to the requirements of the Italian client.”
Work Share
The Italy-based 50-50 venture will act as the lead system integrator, prime contractor, and system integrator for both programs.
“Final assembly lines, homologation testing, delivering activities and the logistic support will be done in Italy with an Italian workshare of 60%,” the companies said.
The venture will also chart the roadmap for its participation in the future European Main Ground Combat System (MGCS) and the new versions intended for export.
The MGCS is the potential successor of the German Leopard and the French Lecrec main battle tanks.