RENK Group has expanded its contract with KNDS Deutschland to supply transmission systems for the Leopard 2 main battle tank and vehicles in the tank’s family, in an order valued at approximately 130 million euros ($149 million).
The expanded agreement covers HSWL 354 hydromechanical transmissions, TCS-354A control units, and G4MA11 gear selectors.
Deliveries are scheduled to begin in 2029 and continue through 2032.
The HSWL 354 transmission is a key component of the Leopard 2’s mobility system, providing power transmission and supporting steering and maneuvering. RENK has supplied the system for more than four decades as part of its longstanding partnership with KNDS.
In June 2026, RENK began production of its 4,000th HSWL 354 transmission, marking a milestone in the program’s production history.
Leopard 2 Fleet
The contract supports production of Leopard 2 vehicles used by Germany and other NATO members, as European countries seek to strengthen their land forces and replenish military equipment.
According to KNDS, armed forces in 23 countries operate approximately 3,300 Leopard 2 tanks and vehicles from the same family. The platform has become a central component of several European armies, with multiple countries ordering new variants or upgrading existing vehicles.
Germany has also increased its defense spending and procurement efforts following Russia’s full-scale invasion of Ukraine in 2022. Leopard 2 tanks have been supplied to Ukraine by several European countries, while other operators have pursued fleet expansion and modernization programs.