Rheinmetall Partners with Czechoslovak Group to Innovate Military Vehicle Technology

Rheinmetall and Czechoslovak Group a.s. have formalized a Memorandum of Understanding concerning tactical military vehicles. The agreement was signed at Hradčany Castle, witnessed by the President of the Czech Republic, Miloš Zeman.

As part of this fresh strategic alliance, both firms aim to facilitate the exchange of defence technology between Germany and the Czech Republic to execute initiatives in the Visegrad nations and beyond. CSG, a pivotal Czech industrial ally of Rheinmetall, will collaborate as a partner in Rheinmetall projects together with numerous other Czech defence organizations within its supply chain.

A collaborative enterprise is set to be launched in the industrial hub of the truck manufacturer Tatra, located in Kopřivnice, Moravian-Silesian region. The newly established firm, a joint endeavor between CSG and Rheinmetall Landsysteme, will proudly feature the prestigious, internationally recognized Tatra brand in its title.

Rheinmetall selected the CSG Group as its primary industrial collaborator in the Czech Republic following a comprehensive evaluation of Czech industry, taking into account its expertise, capacities, and active production of specialized land systems technology. CSG will engage with the Rheinmetall Group promptly and efficiently, boasting a proven capacity to transition production from foreign suppliers, including the development of new vehicle models and securing export projects.

CSG embraces the strategic collaboration with Rheinmetall, Germany’s foremost defence contractor. This joint enterprise signifies that the robust ties between the Czech Republic and Germany will extend into an industry of crucial importance. A novel strategic company will emerge in the Moravian-Silesian Region, which will not merely serve as an assembly facility but as a developer and manufacturer of cutting-edge defence technologies. Consequently, the Czech defence sector will enhance its capabilities in tracked ground vehicle systems, resulting in the creation of new skilled employment opportunities through the joint venture and its downstream supply chain in Czech industry.

“We eagerly anticipate collaborating with Rheinmetall and genuinely believe that our partnership marks a significant milestone in the modernization of the Czech Republic’s armed forces and domestic industry,” stated Michal Strnad, owner of Czechoslovak Group. “There exists potential for Czechoslovak Group to evolve as Rheinmetall’s associate within the Czech Republic and beyond for the replacement and modernization of combat systems.”

“The collaboration with Czechoslovak Group is a critical relationship for Rheinmetall,” remarked Armin Papperger, CEO of Rheinmetall. “This opportunity will permit us to integrate Czechoslovak Group into our extant global supply chain for our extensive range of defence products.”

Rheinmetall innovates, manufactures, and successfully provides advanced defence technologies globally, maintaining German quality alongside an exceptional price-performance ratio. The Czech defence industry and its professionals possess remarkable competencies, making Czech industry an excellent partner for Rheinmetall. This collaboration transcends domestic projects and contracts and boasts long-term potential. Rheinmetall holds significant orders from across the globe, with its production capacities operating at high levels of utilization, prompting the need for premium Czech suppliers.

Rheinmetall seeks a partner in the Czech Republic that is a robust private industrial holding company, possessing a proven aptitude for developing and producing defence technology products, as well as the capability for international operations. CSG’s role in the domestic defence sector is distinctive thanks to its existing collaborations with prominent foreign defence corporations and its well-structured Czech supply chain, comprising private entities and state-owned organizations. Consequently, CSG can guarantee that the proportion of domestic Czech production in advanced land systems exceeds 60 percent. Both Rheinmetall and CSG are poised to invest in this joint enterprise to establish production capabilities and develop new technologies.

The primary objective of the joint venture will be to transfer the manufacturing of land technology groups and subgroups for projects that Rheinmetall is currently engaged in. The project is positioned to operate effectively and provide mutual advantages even in the absence of domestic orders. However, domestic orders serve as a vital catalyst for the project’s advancement as well as for export initiatives within the V4 nations and other markets.

The collaboration of CSG and Rheinmetall through this joint venture represents a tangible transfer of production and expertise with significant added value and extensive multiplier effects for the entire Czech economy, focused on development and production characterized by high added value. This initiative is not merely a theoretical percentage of the Czech portion of defence contracts, but rather a visible project that promises long-term stability.

Czechoslovak Group (CSG) is a holding entity advocating the heritage of Czechoslovak industry. It promotes the advancement of traditional Czech and Slovak firms involved in defence and civil sectors and trade. In 2019, CSG’s firms generated revenues exceeding EUR 28.5 billion and engaged over 8,200 employees. The leading sectors of CSG include mechanical engineering, automotive, rail transport, aerospace, and defence industries. CSG’s offerings are present on all continents, thanks to the company’s strong export orientation.

A publicly listed company, Rheinmetall AG is committed to the dual modern objectives of security and mobility. Based in Düsseldorf, Germany, the Group employs approximately 30,000 individuals globally. Last year’s annual revenue surpassed €6 billion.

The Group’s Defence division encompasses a broad spectrum of capabilities for contemporary ground forces: reconnaissance, command and control, tactical mobility, kinetic operations, and force protection. Rheinmetall stands as one of the globe’s preeminent manufacturers of logistical and tactical vehicles. Across the world, Rheinmetall is synonymous with resilient military trucks and state-of-the-art wheeled and tracked combat vehicles.

Rheinmetall has played a significant role in the Czech automotive sector for many years. The Group operates three facilities in the Ústí nad Labem region, employing around 1,200 individuals collectively. These facilities primarily focus on the production of pistons for petrol and diesel engines as well as components aimed at minimizing harmful emissions and various engine parts.