German‑French KNDS to add two production sites in Germany as government seeks 40% stake

The defence consortium KNDS, a German‑French joint venture behind the Leopard 2 tank and Boxer vehicles, announced plans to build two additional production facilities in Germany. One site will handle the full production chain for wheeled vehicles such as the Boxer, while the other will focus on welding operations. The expansion is intended to quadruple Boxer and artillery output, triple Leopard production and double PUMA output, and is expected to double the German workforce with an additional 4,000‑5,000 jobs.

The German government intends to acquire an initial 40% share in KNDS, a move cleared by the EU competition authority, with a later reduction to 30% planned over two‑to‑three years. KNDS, valued at roughly €20 billion, is also preparing for an initial public offering. The company’s headquarters are in Amsterdam, with its German headquarters in Munich.

These developments aim to strengthen European defence industrial cooperation and increase domestic production capacity amid ongoing security concerns.