Franco-German defense giant KNDS plans to invest over €1 billion in its German enterprises. This involves both expanding existing factories and building new ones.
The company, known among other things for producing CAESAR self-propelled howitzers and Leopard 2 main battle tanks, is currently working on increasing production volumes. This was announced by its CEO Jean-Paul Alary, writes Hartpunkt.
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Most investments are expected to be made this year and next. Such timelines are explained in part by the fact that starting in 2028, there will be a significant increase in product deliveries to Germany.
Part of the new capacity will quite likely be deployed at old neglected sites. An example is given of KNDS Germany purchasing the Alstom plant for armored vehicle production, which was facing closure.
Interestingly, the company's CEO is aware of the complexity of increasing production volumes and talks about expanding process automation. Expansion of the component supply chain is also planned, such as for GTK Boxer infantry fighting vehicles.
Equipment mentioned includes tripling output of armored vehicles under the French Scorpion program. They also support the MGCS next-generation European tank project, although they view it as a long-term solution still under development, offering other KNDS solutions in the meantime.
Defense Express notes that what was said about MGCS corresponds to Germany's existing plans to purchase an interim tank. At the same time, there are currently doubts about the project's future due to slow progress, forcing France to worry about the lack of a Leclerc replacement.
At the same time, the overall expansion of KNDS capabilities in Germany will most likely be directed toward armored vehicles.
Currently, planned Leopard 2A8 tank production volumes are planned to be increased, in part to make them cheaper. Also, in 2030, annual production rates of 1,000 GTK Boxer IFVs are planned, although work there is being conducted in cooperation with Rheinmetall.
Overall, the German defense industry is actively expanding its own capabilities to meet the massive rearmament of the country and all of Europe.
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