The new space of European defense begins here, so dear to Leonardo’s CEO Roberto Cingolani, but also to the Competitiveness Report of the former prime minister, Mario Draghi. The first multinational platform for EU defense, therefore the first draft of a European champion, was born today from the official signing of the joint venture between Leonardo and the German Rheinmetall on military ground vehicles. The announcement is expected this morning, after the final details defined yesterday evening. But it goes well beyond the almost 22.3 billion of the order received by the Italian army for 280 tanks and 1,000 light infantry tracked vehicles. Now the goal is to export European technology and know-how, starting with land defense systems. The Italy-Germany axis is therefore the first crucial step taken by an industry that does not yet have the right size to compete with the USA and China, but aims to broaden its shoulders and export. Moreover, Cingolani himself, who yesterday confirmed the imminence of the announcement, has been working for months to build an axis in Europe with the main European competitors. A scenario that has galvanized the stock on the stock market, which rose by 3.24% yesterday.
THE UNDERSTANDING
Meanwhile, the 50-50 joint venture between the Italian group (50%) and the German one (Rheinmetall Italia should have 10%, the Duesseldorf parent company 40%), will be based in Italy, in La Spezia. The first objective of the alliance announced in July with a Memorandum of understanding, as mentioned, is industrial collaboration for supply programs to the Italian Army. The old Ariete tanks and the Dardo light armored vehicles will be replaced by two Rheinmetall vehicles (the Panther Kf51 heavy tank, under development, and the Lynx light tracked vehicle) which will be adapted to Italian needs. But the next objective, for analysts, will be to export the products and participate in the creation of the European heavy Main Battle Tank”.
THE NEXT MOVES
In August, Rheinmetall CEO Armin Papperger underlined the interest already gathered from some potential customers. And it is precisely in his words that we can find some clues to the next steps. «There are some interested customers. We will sell a minimum of 200 tanks with a potential value of 4 billion from this joint venture alone and 500 systems for infantry fighting vehicles with a potential value of 7.5 billion euros”, underlined the CEO, adding that other potential contracts will open for the supply of ammunition for Panther and Lynx.
Meanwhile in Rome, a team led by the Chief of Staff of the Nigerian Air Force, Hasan Abubakar, met with Leonardo managers to agree on a fleet renewal strategy. According to Reuters, the Nigerian Air Force is purchasing 24 Italian-made M-346 attack jets and ten AW-109 Trekker helicopters. And the first three jets are scheduled for delivery in early 2025, with subsequent deliveries through mid-2026.
For the rest, the new industrial plan will be presented in February, Cingolani specified yesterday. But between now and December the Italian group could score another couple of hits, one on the Space front and the other in the Cybersecurity field. The next acquisition in cybersecurity could mature “already within the year”, the CEO said in recent days with reference to a sector in which the group will grow in double digits. And the same attention is reserved for Space.
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European Defense Takes a Giant Leap: The Leonardo-Rheinmetall Collaboration
Ah, the world of military contracts—a place where the magic happens with more paper than a bank heist! Only this time, it’s the launch of the first multinational platform for EU defense, orchestrated by the suave Roberto Cingolani, CEO of Leonardo, and his German counterparts, Rheinmetall. They’ve signed a joint venture today that’ll get the Italian army nice and cozy with 280 shiny new tanks and a horde of infantry tracked vehicles. Isn’t that general enthusiasm for peace just delightful?
But wait, there’s more! This isn’t just about ensuring our troops ride in style; it’s also about exporting European technology with the kind of ambition normally reserved for an overzealous car salesman. They’re aiming high with a plan to create a European champion in defense against the might of the USA and China. Yes, my friends, we’re talking about broadening their shoulders—just like my last gym session that went horribly wrong!
The Understanding: A High-Stakes Partnership
The joint venture— an eye-watering 50-50 split—may sound like a comfy partnership at first, but let’s be real: a 10% slice for Rheinmetall Italia and 40% for the Düsseldorf parent company is like sharing dessert with a diet-conscious friend who only wants the cherry on top! This collaboration will bring about the Italian transformation of some German heavy metal, namely the Panther Kf51 heavy tank and the Lynx light tracked vehicle. They’re set to swap paint jobs and get all Italian on the battlefield. Mama mia, how thrilling!
The Next Moves: A Future Full of Tanks and Tactics
Moving on, let’s listen to the wise words of Rheinmetall CEO Armin Papperger, who’s quite the confident captain, stating that they have customers *queuing up*! With potential sales of at least 200 tanks and infantry fighting vehicles that could rake in a whopping 7.5 billion euros, it seems like this joint venture is right on track to become the next blockbuster franchise—minus the explosions, of course! Unless they hand over popcorn during military meetings, then we’ve truly arrived!
Global Outreach: From Rome to Nigeria
Meanwhile, over in Rome, the Nigerian Air Force is not just resting its wings. They’re eyeing 24 Italian-made M-346 attack jets, which might just be the latest and greatest thing since sliced bread – or at least since the last questionable military contract! The first three jets are expected to grace Nigerian skies by early 2025, which is a rather sensible timeline compared to “we’ll get back to you next year, we promise!”
Future Prospects: Cybersecurity and Space Adventures
Looking ahead, Cingolani has teased an intriguing new industrial plan set to launch in February, promising another couple of hits in cybersecurity and space. We’ve already tackled land; why not reach for the stars? Because who doesn’t want a piece of the space tech pie? Well, it seems all hands are on deck for another busy season, similar to my old job in a pizza parlor—everyone racing around trying to deliver on time without mixing up the toppings!
So, buckle up, dear readers! European defense is shaking things up with a sprightly new spirit and bold partnerships. Just remember, in this world dominated by deals, tanks, and high-flying jets, there’s always a punchline somewhere, even if it’s hiding under that pile of perfectly drafted contract paperwork!
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