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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.

Joint Venture

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.

CSG welcomes strategic cooperation with Rheinmetall, Germany’s leading defence contractor. The joint venture means that the excellent relations between the Czech Republic and Germany will expand into an industry of strategic importance. A new strategic company will be created in the Moravian-Silesian Region, which will not be a simple assembly plant, but also a developer and manufacturer of modern defence technologies. As a result, the Czech defence industry will expand its capabilities in the field of tracked ground vehicle systems. New skilled jobs will be created by the joint venture and in the downstream supply chain in Czech industry.

Work Ahead

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.

Jack Richardson