German Leopard 2 tank manufacturer establishes joint venture in Ukraine

January 21, 2025

By Ukraine

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Germany’s KNDS Deutschland, the manufacturer of the Leopard 2 tank, has officially launched a joint venture with a Ukrainian defense company, marking a significant step in strengthening Ukraine’s defense capabilities and industry.

It was announced by Herman Smetanin, Ukraine’s Minister of Strategic Industries. “I am pleased to announce the official opening of a joint venture between KMW (KNDS Deutschland) and one of Ukraine’s defense enterprises,” Smetanin stated.

The newly established company will focus on maintaining and repairing military equipment supplied by KNDS to Ukraine’s Defense Forces. The first units of this German-supplied military equipment arrived in Ukraine in 2022. “Ukrainian specialists have already undergone training in Germany, and the first systems have been installed at the facilities,” Smetanin added.

He emphasized that the venture will ensure faster repairs for Ukraine’s defense equipment while also boosting the economy with investments and new jobs.

Besides, by localizing maintenance and repair operations, Ukraine can ensure quicker turnaround times for equipment readiness, a crucial factor amid ongoing war.

In October 2023, the German defense conglomerate Rheinmetall and Ukraine’s state concern Ukrainian Defense Industry (Ukroboronprom) formed a joint venture named Rheinmetall Ukrainian Defense Industry LLC. This partnership focuses on the maintenance and repair of equipment supplied by allies, with plans to localize the production of Rheinmetall’s leading equipment models in Ukraine.

By June 2024, the first joint Rheinmetall-Ukroboronprom armor production site became operational in Ukraine, accelerating vehicle repairs and supporting troops more efficiently.

Further expanding its footprint, Rheinmetall announced plans in October 2024 to open a second military factory in Ukraine, with a total of four facilities envisioned. These plants aim to address ammunition and equipment shortages by producing essential military supplies domestically.

First joint Rheinmetall-Ukroboronprom armor production site operational in Ukraine

German arms giant Rheinmetall to open second Ukraine plant, with four in total

Franco-German defense giant KNDS opens facility in Ukraine

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