Franco-German Company KNDS Plans to Establish Subsidiary in Ukraine for Ammunition & Spare Parts.

French Defense Minister Sébastien Lecornu revealed on March 22, 2024, through his X (formerly known as Twitter) account, plans for the defense company KNDS to establish a subsidiary in Ukraine. This strategic move aims to closely align with the Ukrainian military's needs, providing ammunition and spare parts for the maintenance of German and French systems currently deployed in Ukraine. This initiative underscores a significant step towards potentially enabling the local production of complete systems in the future, marking a critical development in military support for Ukraine amid ongoing regional tensions.
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KNDS booth at World Defense Show defense exhibition in Saudi Arabia. 

KNDS, or KMW+NEXTER Defense Systems, is a major defense conglomerate formed through the partnership of two leading European manufacturers of military land systems: Krauss-Maffei Wegmann (KMW) of Germany and Nexter of France. This strategic alliance has created a significant entity in the defense industry, encompassing approximately 9,000 employees. As of 2022, KNDS reported a turnover of 3.2 billion euros, with an order backlog of around 11 billion euros.

KNDS product range is extensive, including main battle tanks, armored vehicles, artillery systems, weapons systems, ammunition, military bridges, and related customer services. This consolidation aims to strengthen the capabilities of both companies in addressing export markets and fulfilling the needs of the French and German armies, in the face of increasing competition.

According to Minister Lecornu, during a conference with his German counterpart, Boris Pistorius, the primary goal of this industrial unit is not the complete production or assembly of new equipment. Instead, it will focus on manufacturing spare parts and ammunition for the Caesar cannons and AMX10RC armored vehicles previously supplied by France to Ukraine. Since the conflict's onset on February 24, 2022, France has delivered 30 CAESAR 155mm wheeled self-propelled howitzers and 38 AMX10RC armored vehicles to Ukraine, with a recent announcement of an additional 78 Caesar cannons as part of an artillery coalition plan.

The subsidiary will produce wear and tear parts for these machines, including chassis and engine components, cannon barrels, and their elements. Given the Ukrainian army's intensive use of the Caesar cannon, which is estimated to have a lifespan of approximately 2,000 shots—a threshold far exceeded in current operations—this initiative is critical.

The effort also addresses the urgent need for ammunition, with the production of 155 mm shells for the Caesar and 105 mm shells for the AMX10RC, essential for Ukraine's defense strategy on the front lines. Amid low stockpiles and the pressing need to conserve ammunition, Europe had pledged to deliver one million 155 mm shells, though production in French and German facilities has yet to meet this commitment. A stockpile of 800,000 shells of these calibers was recently sourced by the Czech Republic from non-European countries, offering a temporary reprieve.

This development represents a significant step by European nations to support Ukraine in the face of escalating aggression from Russia, highlighting the international community's commitment to ensuring Ukraine's sovereignty and security.

Defense News March 2024