Rheinmetall and Czechoslovak Group sign MOU for production of military vehicles

 26. 11. 2020      category: Events

Rheinmetall and Czechoslovak Group a.s. have signed a Memorandum of Understanding in the field of tactical military vehicles. The signing took place at Hradčany Castle in the presence of the President of the Czech Republic, Miloš Zeman.

Under this new strategic partnership, both companies want to enable the transfer of defence technology between Germany and the Czech Republic in order to implement projects in the Visegrad states as well as other countries. A key Czech industrial and business partner of Rheinmetall, CSG will act as a partner in Rheinmetall projects, together with dozens of other Czech defence companies in its supply chain.

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Picture: Rheinmetall  and Czechoslovak Group sign mou for production of military vehicles (illustrative photo) | Shutterstock

A joint venture is to be established in the industrial zone of the truck producer Tatra, based in Kopřivnice, Moravian-Silesian Region. The newly founded company, which will be a joint venture of CSG and Rheinmetall Landsysteme, will have the prestigious, internationally known Tatra brand in its name.

Rheinmetall chose the CSG Group as its main industrial partner in the Czech Republic after a thorough analysis of Czech industry, taking into account its experience, capabilities and active production of special land systems technology. CSG will be able to cooperate with the Rheinmetall Group quickly and effectively. It has a proven ability to transfer production from foreign suppliers, including the ability to develop new vehicle variants and obtain export projects.

Rheinmetall develops, manufactures and successfully delivers modern defence technologies worldwide with German quality and an excellent price-performance ratio. The Czech defence industry and the people who work in it possess excellent skills. Czech industry is therefore a natural partner for Rheinmetall. This partnership does not depend on domestic projects and contracts alone. It has long-term potential. Rheinmetall has important orders from all over the world. Its production capacities are at a high level of utilization, which is why it needs high-quality Czech suppliers.

The first task of the joint venture will be to transfer the production of land technology groups and subgroups in projects which Rheinmetall is currently working on. The project can work and be mutually beneficial even without domestic orders. On the other hand, domestic orders are an important impetus for the development of the project as well as for export projects within the V4 countries and other markets.

Cooperation of CSG and Rheinmetall in the form of a joint venture represents a real transfer of production and know-how with high added value and great multiplier effects for the entire Czech economy within the framework of development and production with high added value. This is not a virtual percentage of the Czech share of defence contracts, but a project that will actually be seen and which will be long term and stable.

CZECHOSLOVAK GROUP (CSG) is a holding company developing the tradition of Czechoslovak industry. It supports the development of traditional Czech and Slovak companies engaged in defence and civil industry and trade. In 2019, CSG´s companies generated sales of more than EUR 28.5 billion and had more than 8200 employees. The main branches of CSG are mechanical engineering, automotive, railway, aerospace and defence industries. CSG's products are present at all continents thanks to the company's strong pro-export orientation.

 Author: Martin Šiška