The new joint venture gives Rheinmetall a 55% stake, with BAE owning the rest, and will be based at the UK firm’s factory in Telford, Shropshire.
Called Rheinmetall BAE Systems Land, the venture will produce the British Army’s new infantry vehicles.
BAE’s Land UK is competing to upgrade and maintain the Challenger 2 tank.
About 400 people work at the main Telford factory, and at sites in Washington, Filton and Bovington. The new venture will not include Land UK’s munitions and technology interests.
BAE said the combination of Rheinmetall’s military vehicles technology and products, together with BAE’s capabilities, would create a European market leader in the military vehicle sector with the potential to create new jobs in the UK. more