foto: redakce/Leopard 2A8 at Eurosatory 2024
During Eurosatory 2024 in Paris, we had the opportunity to talk to the Sales Director of KNDS Deutschland, Mr. Thomas Fritzsch. The main topic was the industrial cooperation within the Leopard 2A8 acquisition project for the Czech Armed Forces with positive effects for the Czech economy.
On 24 June, the Ministry of Defence of the Czech Republic signed a Cooperative Procurement Agreement (CPA) for the acquisition of up to 77 Leopard 2A8 main battle tanks manufactured by the German company KNDS Deutschland (formerly KMW). It was already announced before the signing that one of the main topics of the following negotiations, which will culminate in the submission of the CPA, will be the way of involvement of the Czech defence industry in addition to the price.
The conditions for the purchase of Leopard 2A8 tanks will be the same in Germany and the Czech Republic
The Czech Army should receive 61 units in six modifications, and possibly, if the option is exercised, up to 77 Leopard 2A8 tanks to complement the 14 Leopard 2A4 tanks already in service (and up to 28 more tanks of the same version plus three recovery tanks). "The cost of purchasing 61 units together with related material (simulators, workshop kits, training), including inflation and exchange rate reserves and VAT, is planned at CZK 39.8 billion. With the acquisition of 77 tanks, the projected cost is CZK 52.1 billion," the MoD said on its website, adding on social network X: "The final price is still to be negotiated, but it will be the same as the price at which the Germans will buy the tanks."
"The involvement of Czech companies in the project is one of the priorities of the Ministry of Defence. It means not only economic profit, but especially strengthening security of supply in case of a crisis. In line with the key strategic documents of the Czech Republic, the Ministry of Defence aims to ensure that the Czech defence industry is able to provide peacetime and crisis supplies of military equipment to ensure the defence of the Czech Republic and the fulfilment of allied commitments," the ministry further states, and we were interested in the overall approach of KNDS Deutschland to the issue of industrial cooperation.
Industrial cooperation will be long-term
KNDS Deutschland's commercial director Thomas Fritzsch confirmed to Security Magazine that the wording of the agreements for the joint acquisition of tanks will be the same in all countries, and that the same applies to service contracts and prices. The company is not preparing the industrial cooperation for a one-off tank purchase, but as a long-term European project. According to Thomas Fritzsch, Czech companies will then be a key part of the European network that the manufacturer is building. This is essentially a logical development of existing relationships within the LEOBEN (Leopard-benutzende Staaten – Leopard Using States) grouping. This was founded in 1969 by Germany, Belgium, the Netherlands and Norway with the aim of mutual support, facilitating the supply of spare parts and maintenance, encouraging further development of individual systems by feedback and generally keeping the weapon up to date.
- Eurosatory 2024, Day 3, we are at the exposition of the KNDS together with Mr. Thomas Fritzsch. Good afternoon sir.
Good afternoon, dobrý den.
- The major topic for us now of course is the acquisition of Leopard 2A8 Main Battle Tanks. As we know, the Czech Government has approved the CPA (Cooperative Procurement Agreement) last week. My question would be how do you perceive the CPA from the point of view of your company.
First of all we have to admit that the CPA is a Government to Government agreement. We are informed about this, but we are not a negotiating or signing party of this CPA. This is only Germany and the participating nations, in this regard the Czech Republic.
- Now, what will follow, are negotiations where the major focus will be the industrial cooperation. Can you tell us more about the concept of this cooperation from the point of view of KNDS?
Yes. Maybe one step back to the CPA, because there is something which has to be admitted. What we know for sure is that the CPAs between Germany and the participating nations are looking completely the same. So all the nations have the same CPA with the Federal Republic of Germany. So there is not a Czech version, or any other version. And this means also the T&Cs and also the prices are the same. Just to add what we know from the German Government.
When it comes to industrial participation, we have really really intense talks with several companies in serveral nations. Because our approach is that this should be not only a European joint procurement, it should be really a European joint project, also when it comes to the involved industry. So our aim is not to "copy and paste" industrial layouts in each and every country. We would like to build up a European network of industry, capable industry, reliable industry, so that we could manufacture and deliver the tank in the quality which is needed, intime and also pricewise.
And we don't do this only for one country, but for all the countries. This means we are building up this European network, and the Czech industry is a crucial part of it, because this is one of the first nations which are joining this, and we had also the talks with the both the industry and with the industrial cooperation section of the MoD. And we are in close cooperation with both sides, we have good talks, and we think we will come to a really really good result very very soon.
Tagy