UK based Land Systems Joint Venture to Be Established by Rheinmetall and BAE Systems
TELFORD, the UK (BulgarianMilitary.com) – Rheinmetall and BAE Systems announced this Monday (21st January 2019) that the companies have signed a contract for establishing a joint military vehicle design, manufacturing and support business based in the United Kingdom, learned BulgarianMilitary.com
For that purpose Rheinmetall will buy a 55% stake in the current BAE Systems combat vehicles business based in the United Kingdom and BAE Systems will retain 45%.
The plan is the new business entity to be a major player in the supply of new Mechanised Infantry Vehicle (MIV) and other strategic combat vehicles programmes for the needs of the British Army.
MIV is the British Army’s concept of an 8×8 wheeled vehicle.
The creation of the above mentioned Joint Venture, which is to be known as Rheinmetall BAE Systems Land (RBSL), however, is subject to regulatory approvals and it is planned they to be completed within the first six months of 2019.
The headquarters of RBSL will be located at the facility of BAE Systems in Telford, the UK and will provide over 400 jobs in the United Kingdom.
Jennifer Osbaldestin, the Managing Director of BAE Systems Land UK business commented that the newly established Joint Venture in the UK with Rheinmetall, “provides renewed purpose for our vehicles business and allows us to deliver products, services and technology that help land forces excel in their vital roles. We look forward to working together to ensure the Joint Venture is a trusted supplier to the British Army and our international customers.”
When the military vehicles technology and products offered by Rheinmetall are combined with the capabilities and products of BAE Systems, such as Trojan, Warrior, Terrier, military bridging and the AS90 self-propelled artillery system, it is expected that a European market leader in the military vehicle sector will be created.
Ben Hudson, Global Head of Rheinmetall’s Vehicle Systems Division, said, “The combined capabilities of our two great companies will offer our customers a comprehensive portfolio of military vehicles and associated technologies both now and into the future. We are proud to invest in the UK and expect to substantially grow the current business and the Telford manufacturing facility over the coming years.”
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Source: BAE Systems, Rheinmetall, Wikipedia