The opening of KNDS Ukraine, an MRO establishment in Ukraine, marks a milestone in the collaboration between Ukrainian defence forces and the Franco-German armaments group KNDS.

With a portfolio of approximately 800 systems in active deployment or under contract, KNDS is now set to enhance the operational readiness of military assets in Ukraine, including the Leopard 1 and 2 main battle tanks, CAESAR artillery, PzH 2000 self-propelled howitzers, and Gepard anti-aircraft systems.

The establishment of KNDS Ukraine aims to facilitate maintenance, repair, and overhaul (MRO) work on these military systems within Ukraine. This initiative supports the immediate needs of the Ukrainian armed forces and aims to build a sustainable defence infrastructure capable of servicing Nato-standard equipment.

The increased MRO capabilities are expected to enhance the availability and operational readiness of these systems, ensuring that they can be deployed effectively in Ukraine’s defence.

Ukraine MRO enables local industry

The initiative is part of a broader Franco-German government strategy to support Ukraine’s defence capabilities. Defence Ministers Sébastien Lecornu of France and Boris Pistorius of Germany announced the foundational plans for KNDS Ukraine on 22 March, 2024.

In addition to MRO capabilities, KNDS Ukraine aims to collaborate with local manufacturers to produce 155mm artillery ammunition and spare parts. This initiative represents a step towards self-sufficiency in defence production for Ukraine.

This month, it was announced that Germany is set to provide Ukraine with an additional 12 Panzerhaubitze 2000 (PzH 2000) self-propelled howitzers, with six arriving in late 2024 and the remaining six in 2025. This brings the total number of PzH 2000s sent to Kyiv to 30. Notably, this latest batch was sourced from the industry rather than the Bundeswehr’s inventory.

PzH 2000
German soldiers operate the PzH 2000 during exercises with the US military in 2016. Credit: US Army

Partnership for defence resilience

The collaboration aims to create a supply chain that supports ongoing military operations while reducing dependency on external sources for components.

KNDS Ukraine represents a step towards delegating Ukrainian industry, ensuring the operational readiness of military systems, and fostering long-term resilience in the defence sector. This initiative supports Ukraine’s immediate defence needs and lays the groundwork for a sustainable and autonomous military-industrial complex, aligning with Nato standards.

In other recent KNDS developments, Canada awarded KNDS Germany a €600m (C$907.2m) contract to sustain its Leopard 2 main battle tanks through March 2031, with an optional five-year extension that could raise the total to C$2bn. The agreement includes establishing a new Regional Maintenance and Repair Centre near Edmonton, Alberta.