The signing ceremony was attended by French Defense Minister Sébastien Lecornu and German Defense Minister Boris Pistorius. Credit: © Rheinmetall AG/KNDS.

The Franco-German Main Ground Combat System (MGCS) programme has reached a significant milestone with the signing of the shareholder agreement for the MGCS Project Company. 

KNDS Deutschland, KNDS France, Rheinmetall Landsysteme, and Thales have signed the pact. 

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The ceremony in Paris was attended by French Defense Minister Sébastien Lecornu and German Defense Minister Boris Pistorius.  

The MGCS, which will feature advanced technology to enhance interoperability, will replace the existing Leopard 2 and Leclerc main battle tanks with a cross-platform system by 2040. 

This agreement will enable MGCS Project Company to emerge as the industrial prime contractor for the next phase of the programme. 

This will come after finalising 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). 

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In a joint statement, the companies said: “The industrial partners in the MGCS programme 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).” 

Commenting on the agreement on platform X, Thales said: “This strengthens Europe’s defence sovereignty.”  

The new project company’s responsibilities will include refining the system’s concept and its core technological components.  

Ownership of the company will be evenly distributed among the signatories, with KNDS Deutschland, KNDS France, Rheinmetall Landsysteme, and Thales each holding a 25% stake, while operational efforts will be equally shared between Germany and France.  

The company’s headquarters will be situated in Cologne, Germany. 

The latest announcement comes after the establishment of KNDS Ukraine in October 2024 marked a step in the cooperation between Ukrainian defence forces and the KNDS group.  

KNDS represents a strategic alliance between Krauss-Maffei Wegmann and Nexter, European military land system manufacturers from Germany and France, respectively.