KNDS Deutschland, KNDS France, Rheinmetall Landsysteme, and Thales have signed the shareholder agreement for the establishment of the “MGCS Project Company GmbH” in Cologne. The agreement, finalized in the presence of French Defense Minister Sébastien Lecornu and German Defense Minister Boris Pistorius, represents a critical milestone in the German-Franco Main Ground Combat System (MGCS) program.
The MGCS initiative, designed to replace the Leopard 2 and Leclerc main battle tanks with an advanced cross-platform combat system by 2040, symbolizes a collaborative effort between Germany and France to enhance defense innovation and interoperability.
The signing of the shareholder agreement enables the creation of the MGCS Project Company, which will act as the industrial prime contractor for the program’s next phase. Following negotiations with the Federal Office of Bundeswehr Equipment, Information Technology, and In-Service Support (BAAINBw), the company will focus on consolidating the program's concept and technological foundations.
The MGCS Project Company will be equally owned by the four partners, with each holding a 25% stake. The workshare will be evenly distributed between Germany and France, and the company’s headquarters will be located in Cologne, Germany.
The agreement follows a Letter of Intent (LOI) signed in spring 2024, reflecting the commitment of the French and German governments to drive innovation in land defense systems.
Company Profiles
KNDSKNDS (KMW+NEXTER Defense Systems) unites Krauss-Maffei Wegmann and Nexter, two leading European military land systems manufacturers. With approximately 9,000 employees and a 2023 turnover of €3.3 billion, KNDS offers a broad portfolio of products, including main battle tanks, armored vehicles, artillery systems, and battle management solutions. The group is headquartered in Amsterdam and plays a key role in consolidating the European land defense industry.
RheinmetallRheinmetall AG, based in Düsseldorf, is a global defense leader and a pioneer in industrial and technological innovation. In 2023, Rheinmetall generated €7.2 billion in sales and employs over 31,000 people across 171 locations worldwide. Its subsidiary, Rheinmetall Landsysteme GmbH, specializes in land systems as part of the Rheinmetall Vehicle Systems Division.
Thales
Thales, listed on Euronext Paris, is a global leader in defense, aerospace, and cyber technologies. The group invests €4 billion annually in R&D, focusing on areas such as AI, quantum technologies, and cybersecurity. Operating in 68 countries with 81,000 employees, Thales achieved €18.4 billion in sales in 2023, reinforcing its position as a global innovator in advanced technologies.
