October 1, 2024

European defence group KNDS opens subsidiary in Ukraine

By Defence Industry Europe

Germany will supply Ukraine with modern Leopard 2 battle tanks and allow allies such as Poland, Finland and the Netherlands to do so as well. These countries had also declared their willingness to supply Leopard tanks to Ukraine. According to reports in several US media, the USA is planning to make its Abrams tanks available. The New York Times reports that 30 to 50 units are being discussed. The United Kingdom has already promised 14 Challenger tanks. The Leopard is one of the most modern and best battle tanks in the world, and is deployed in 14 European countries. For months Ukraine has been demanding Western-designed battle tanks to fight the Russian aggressors. — Photo: German Armed Forces.

In a major development to strengthen its ties with Ukraine, Franco-German defence group KNDS has announced the establishment of a new subsidiary in Kyiv. The subsidiary, named KNDS Ukraine LLC, aims to facilitate closer cooperation between Ukrainian government institutions, the local defence industry, and KNDS, which has become one of the country's key suppliers of military equipment.

KNDS, a leading provider of land defence systems, currently has around 800 pieces of equipment either deployed or under contract with Ukraine, including high-profile systems such as the Leopard 1 and 2 main battle tanks, the CAESAR artillery gun, the AMX-10 RC reconnaissance vehicle, the PzH 2000 armoured howitzer, and the Gepard anti-aircraft system. In addition to these systems, KNDS has played a significant role in delivering essential ammunition to Ukraine’s armed forces.

The new Kyiv-based subsidiary, KNDS Ukraine LLC, will focus on increasing the availability and readiness of these systems for combat by establishing local capabilities for maintenance, repair, and overhaul (MRO). This will allow for faster repairs and servicing of KNDS equipment within Ukraine, enhancing the operational effectiveness of Ukrainian forces on the front lines. Additionally, KNDS and Ukrainian industry plan to jointly produce 155 mm artillery ammunition and spare parts using advanced manufacturing technologies, further boosting Ukraine’s defence capabilities.

The creation of KNDS Ukraine LLC is part of a broader Franco-German government initiative aimed at supporting Ukraine’s military efforts. The initiative was introduced by French Defence Minister Sébastien Lecornu and German Defence Minister Boris Pistorius in March 2024.

KNDS is the result of a strategic alliance between two of Europe’s leading manufacturers of military land systems: Krauss-Maffei Wegmann (KMW) of Germany and Nexter of France. Together, these companies form a defence group of approximately 9,500 employees, with a turnover of EUR 3.3 billion in 2023, an order backlog of around EUR 16 billion, and incoming orders totalling EUR 7.8 billion. KNDS’s product range includes main battle tanks, armoured vehicles, artillery systems, weapons systems, ammunition, military bridges, and a variety of other defence solutions.

The formation of KNDS represents a significant step towards the consolidation of Europe’s land defence systems industry. By bringing together KMW and Nexter, KNDS enhances its competitiveness and ability to meet the needs of European and NATO customers. The alliance also promotes greater standardisation and interoperability of defence equipment across Europe, providing a reliable industrial base for future defence needs. The group’s headquarters are located in Amsterdam.