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KNDS

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KMW+Nexter Defense Systems N.V.
IndustryDefence
FoundedDecember 15, 2015; 8 years ago (2015-12-15)
Headquarters
Amsterdam
,
Netherlands
Key people
Frank Haun (CEO)
Revenue€2.4 billion (2015)
Owners
Number of employees
8270 (2020)
SubsidiariesKrauss-Maffei Wegmann
Nexter Systems
Websitewww.knds.com

The KMW+Nexter Defense Systems (KNDS) is a European defence industry holding company, which is the result of a merger between Krauss-Maffei Wegmann and Nexter Systems. The joint holding company is headquartered in Amsterdam, Netherlands.[1]

History

KNDS is the joint holding company formed by German family-controlled defence company Krauss-Maffei Wegmann (KMW) and the French government-owned weapons manufacturer Nexter, two of the leading European manufacturers of military land systems.[2]

Negotiations between the companies and the German and French governments started in Summer 2014,[3][4] and support for a merger has been building in both Germany and France. Presenting the project to French lawmakers in January 2015,[5] CEOs of both companies assumed that the new holding would boost production for both manufacturers by avoiding export restrictions, especially in Germany.[6] In July 2015 the National Assembly voted in favour of a measure that permits the privatisation of state-owned defence companies, paving the way for KMW and Nexter to join forces.[7][8] On 29 July 2015 the merger between the two companies had been officially signed in Paris,[9] in the presence of Ursula von der Leyen and Jean-Yves le Drian.[7] It was remarked in 2015 that the corporate culture of Nexter led to outsourcing components, while that of KMW preferred to manufacture in-house.[7] KMW made the PzH 2000 while Nexter made the CAESAR.[7] The two merger firms complemented each other, instead of competing with each other.[7]

The merger was completed in December 2015 when the supervisory board appointed the new CEO of Nexter Systems, Stéphane Mayer, and the chairman of the executive board of KMW, Frank Haun, as CEOs of the holding company.[10]

In July 2016 the French press seemed content with the merger of the manufacturers of Leopard 2 and Leclerc MBT, although it was disappointed that the combined company was still 25% of the size of General Dynamics or BAE Systems.[11]

Prior to November 2018 the lead of the new Main Ground Combat System MBT was awarded to the German half of the firm, by decision of the politicians of both France and Germany.[12]

In November 2018 Rheinmetall was thinking of taking over the 50% share of the German holding company, after the death of Manfred Bode.[12] By December 2018 it had become apparent that Rheinmetall was seeking 75% of the whole KNDS company.[13]

As of 2020 the total number of employees at KNDS and its subsidiaries is 8,270 with a turnover of €2.4 billion, an order backlog of around €10.6 billion and an order intake of €3.3 billion. The range of its products includes main battle tanks, armored vehicles, artillery systems, weapons systems, ammunition, military bridges, customer services, battle management systems, training, protection and a wide range of equipment.[14]

In 2023, KNDS decided to replace the WFEL moniker of its British subsidiary by KNDS UK.[15]

Products

In June 2018 the German and French ministries of defence signed a letter of intent for KNDS to develop the Main Ground Combat System (MGCS), a common main battle tank, and the Common Indirect Fire System, a common 155mm self-propelled artillery gun.[16]

Leopard 2 upgrade

One of KNDS's first projects was upgrading the Leopard 2, with a focus on increasing effectiveness against contemporary threats like anti-tank guided missiles and the Russian T-14 Armata tank.[17]

Main Combat Ground System

Main article: Main Ground Combat System

Common Indirect Fire System

The Common Indirect Fire System (CIFS) is a French-German program to develop a 155mm self-propelled artillery gun. Introduction of the CIFS is scheduled for 2040.[citation needed]

Boxer AFV

Manufacture of the British Boxer AFV was sublicensed from WFEL (now KNDS UK) to MTL Advanced.[18]

Military bridges

KNDS UK is able to build portable bridges that can support the weight of a Challenger 3 MBT.[19]

References

  1. ^ KMW, Nexter Merger Completed Archived 2016-04-11 at the Wayback Machine. defense-update.com. Retrieved 10 June 2016
  2. ^ Report: KMW, Nexter to sign merger agreement Archived 2015-06-12 at the Wayback Machine. upi.com. Retrieved 13 June 2015
  3. ^ "Nexter, KMW start talks on possible defence tie-up - source". July 2014.
  4. ^ Cite error: The named reference les1 was invoked but never defined (see the help page).
  5. ^ "Assemblée nationale ~ Compte rendu de réunion de la commission de la défense nationale et des forces armées".
  6. ^ Commission de la défense nationale et des forces armées Archived 2015-05-24 at the Wayback Machine. assemblee-nationale.fr. Retrieved 13 June 2015 (French)
  7. ^ a b c d e "Comment le mariage entre Nexter et Krauss-Maffei a été blindé". 29 July 2015.
  8. ^ German, French tank makers could merge next week Archived 2016-03-04 at the Wayback Machine. dw.com, 10 July 2015
  9. ^ German, French tank makers KMW and Nexter seal armoured vehicles tie-up Archived 2015-08-03 at the Wayback Machine. economictimes.indiatimes.com, retrieved 27 July 2015
  10. ^ Nexter Systems and Krauss-Maffei Wegmann have completed their association Archived 2017-12-01 at the Wayback Machine. nexter-group.fr. Retrieved 10 June 2016
  11. ^ "Mariage de raison entre les chars Leclerc et Léopard". Le Monde.fr. 13 June 2016.
  12. ^ a b "L'Équilibre franco-allemand dans les blindés pourrait être remis en cause". 30 November 2018.
  13. ^ "L'Allemand Rheinmetall viserait 75% des parts de KNDS, l'alliance formée par Nexter et Krauss-Maffei Wegmann". 10 December 2018.
  14. ^ "Home | KNDS". Archived from the original on 2022-07-12. Retrieved 2022-08-02.
  15. ^ https://marketingstockport.co.uk/news/stockport-manufacturer-secures-150-million-british-army-contract/. {{cite news}}: Missing or empty |title= (help)
  16. ^ "KMW, Nexter join forces on main ground combat system, common indirect fire system", Def post, archived from the original on 2018-10-12, retrieved 2018-10-12.
  17. ^ German, French tank makers could merge next week Archived 2016-03-04 at the Wayback Machine. DW, 10 July 2015
  18. ^ https://www.pesmedia.com/uk-defence-manufacturer-secures-40m-military-vehicle-contract. {{cite news}}: Missing or empty |title= (help)
  19. ^ https://defence-industry.eu/knds-uk-secures-gbp-150m-contract-for-advanced-military-bridges/. {{cite news}}: Missing or empty |title= (help)
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