Signature of MGCS Project Company shareholder agreement

The signing of the shareholder agreement marks an essential step in the forthcoming creation of the MGCS Project Company. After negotiating a contract with the Federal Office of Bundeswehr Equipment, Information Technology and In-Service Support (BAAINBw), acting on behalf of the two states through a German-Franco Combined Project Team (CPT), this project company will be responsible as the industrial prime contractor for the implementation of the next phase of the MGCS program. In particular, it will consolidate the concept and the main technological pillars of the system. The company will be equally owned by the parties, 25% each, with a national workshare of 50% Germany and 50% France, and will be based in Cologne, Germany.

The industrial partners in the MGCS program are delighted with this signature, which follows on from the impetus given by the French and German governments in the spring of 2024, with the signing of a Letter Of Intent (LOI).

About KNDS:

KNDS (KMW+NEXTER Defense Systems) is the result of the association of Krauss-Maffei Wegmann and Nexter, two of the leading European manufacturers of military land systems based in Germany and France.

KNDS forms a Group of around 9,000 employees, with a 2023 turnover of 3.3 billion euro, an order backlog of around 16 billion euro and incoming orders of 7.8 billion euro. The range of its products includes main battle tanks, armored vehicles, artillery systems, weapons systems, ammunition, military bridges, customer services, battle management systems, training solutions, protection solutions and a wide range of equipment.

The formation of KNDS represents the beginning of consolidation in land defense systems industry in Europe. The strategic alliance between KMW and Nexter enhances both groups’ competitiveness and international positions, as well as their ability to meet the needs of their respective national army. In addition, it offers to its European and NATO customers the opportunity of increased standardization and interoperability for their defense equipment, with a dependable industrial base.

KNDS headquarters are based in Amsterdam.

About Thales:

Thales (Euronext Paris: HO) is a global leader in advanced technologies specialized in three business domains: Defence, Aerospace and Cyber & Digital. It develops products and solutions that help make the world safer, greener and more inclusive.

The Group invests close to €4 billion a year in Research & Development, particularly in key innovation areas such as AI, cybersecurity, quantum technologies, cloud technologies and 6G.

Thales has close to 81,000 employees in 68 countries. In 2023, the Group generated sales of €18.4bn.