European defense conglomerate KNDS, a merger between Germany's Krauss-Maffei Wegmann and France's Nexter, has announced the launch of KNDS Ukraine LLC, a subsidiary aimed at producing ammunition and spare parts for Western military vehicles.
The entry of this company into Ukraine is highly significant, as the Ukrainian Defense Forces are using a wide array of KNDS-produced weapons systems.
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According to the company’s official statement, the purpose of opening this Ukrainian unit is to "empower the Ukrainian industry to carry out maintenance, repair, and overhaul work on KNDS systems." Among them are Leopard 1 and Leopard 2 main battle tanks and their variants, CAESAR and PzH 2000 self-propelled howitzers, and AMX 10RC wheeled combat vehicles.
"Besides the military equipment, the production of 155mm caliber ammunition is of critical importance at our enterprises," said Dmytro Klymenkov, Deputy Defence Minister of Ukraine, at the opening ceremony. "And I'm sure that together we'll be able to realize many important initiatives to reinforce Ukraine's and Europe's defense," he added.
KNDS is one of Europe's leading ammunition manufacturers, producing a wide range of munitions from automatic gun rounds and mortar shells to tank and artillery ammunition. One of its well-known products is the 155 BONUS shell, capable of striking two targets simultaneously.
The company also highlighted plans to "produce spare parts using leading-edge manufacturing technologies" at the new facility which would accelerate the repair of weapons systems by eliminating delays in shipping components from abroad. This localized production will also lay the groundwork for potentially establishing a full production cycle for military systems in Ukraine.
The significance of KNDS’s entry into Ukraine extends beyond immediate maintenance needs and plays important role in the process of rearming Ukraine's military in the long term. For a reminder, KNDS is set to deliver 54 RCH-155 advanced self-propelled artillery systems to Ukraine, with first supplies arriving in 2025. Additionally, any future upgrades of Leopard 2 tanks will be handled by KNDS.
The establishment of repair and maintenance capacities in Ukraine is only the first step in what is expected to evolve into localized production and integration into Europe’s defense supply chains, and not just when it comes to fulfilling Ukraine's orders but potentially other nations, too.
After all, global weapons shortages are pushing arms manufacturers to make significant organizational changes, sometimes leading to unexpected outcomes. A notable example is Germany's contract with Rheinmetall to produce Boxer wheeled combat vehicles, which will be shipped from Australia rather than manufactured domestically.
Lastly, we should note that the creation of KNDS Ukraine LLC stems from an agreement between the German and French defense ministers, Boris Pistorius and Sébastien Lecornu, reached in March of this year.
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