Europe continues to work on increasing production volumes of German Leopard 2A8 main battle tanks. This time, the localization of hull production will be organized in the Czech Republic.
The agreement was signed between KNDS Germany and Tatra Defence. Under the agreement, Tatra Defence will be responsible for welding and quality control of 150 tank hulls, with an option for an additional 300 hulls.
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This will significantly strengthen the capabilities of Czech industry, marking its return to the production of new tanks for the first time in many years. However, it also represents a significant expansion of the European defense industry as a whole.
The Czech Republic is implementing this project as part of its commitments under the Leopard 2A8 program. Earlier, the localization of assembly for these vehicles was initiated in Lithuania. Therefore, it is likely that similar announcements will eventually follow from the Netherlands and Croatia, which are also part of the program.
The expansion of main battle tank production should strengthen Europe's overall defense manufacturing output. This is particularly important, as current annual output is expected to remain below 100 units.
Localization may also be the reason for the considerable cost of the Leopard 2A8, which can reach €32 million per unit. This means that once additional industrial capacity is deployed, it may be possible to reduce costs.
However, it should not noted that an important factor here is the availability of a large order that factories will fulfill. Germany is planning to buy 75 more tanks, but more are needed from other countries.
It should be noted that its closest competitor, the South Korean K2 tank, is already being produced at a rate of 120 units per year, supported by a sizeable and continuously expanding portfolio of contracts. This makes promoting the Leopard 2A8 to Greece and Romania even more important.
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