BAE to create UK-based Land Systems JV with Rheinmetall

Defence company BAE Systems has sold a 55% stake in its Land UK tank and combat vehicle division to Germany's Rheinmetall.

The joint venture, which will be known as Rheinmetall BAE Systems Land, will be based at BAE's facility in Telford, England, and will sustain more than 400 jobs in the UK.

In addition to managing and growing the existing combat vehicle support business, the new JV will play a major role in the delivery of the British Army’s new Mechanised Infantry Vehicle (MIV) and other strategic combat vehicles programmes.

BAE said the combination will create a European market leader in the military vehicle sector.

Jennifer Osbaldestin, managing director of BAE Systems' Land UK business, said: "We are committed to evolving our combat vehicles business so that we better serve our customers’ future interests.

"Joining forces with Rheinmetall in the UK 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."

Ben Hudson, global head of Rheinmetall’s vehicle systems division, said: "We are excited about the potential the new Joint Venture holds for Rheinmetall, BAE Systems and ultimately our customers.

"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."