Germany plans to buy an initial 40% stake in defence company KNDS, the maker of Leopard 2 tanks and Panzerhaubitze 2000 systems, as Berlin seeks greater involvement in the defence industry and aims to retain key expertise.
European defence company KNDS has confirmed plans to go public in 2026, with a stock market listing in both Paris and Frankfurt. The German-French group, manufactures the Leopard 2 main battle tank and the CAESAR artillery system.
German politicians voiced their outrage on Friday after a CNN report detailed an alleged Russian plot to assassinate the head of German arms maker Rheinmetall, Armin Papperger, as a Kremlin spokesman denied any involvement from Moscow.
Ralf Ketzel, managing director of KNDS, manufacturer of Leopard 2 battle tanks, said,”The ability to deliver quickly is now exhausted,” adding, “Two years ago, a strategic decision should have been made that this will be a war lasting several years. Then we could deliver new material today,” in reference to Russia’s full-scale invasion of Ukraine launched in February 2022.
Economy Minister Aušrinė Armonaitė said Rheinmetall would invest more than €180 million ($195 million) in the new plant, which is expected to produce 155-millimetre artillery shells. Rheinmetall is already active in Lithuania, operating a maintenance centre with defence company Krauss-Maffei Wegmann in the country since 2022. The facility maintains combat vehicles used by NATO combat units stationed in the region, as well as Leopard 2 battle tanks given by Germany to Ukraine.
