Rheinmetall acquires controlling interest in Artec

Rheinmetall has acquired Dutch armored vehicle company Stork PWV, a move that gives the German armor company control of Artec, the company created to develop the Boxer armored vehicle for the Dutch and German armies.

The two sides declined to disclose the acquisition price and said the deal is still subject to regulatory approval.

Rheinmetall already holds 14 percent of Artec, with German rivals Krauss-Maffei Wegmann holding 36 percent. The remainder is held by the Dutch. The acquisition will give Rheinmetall a 64 percent stake in one of Europe's largest armored vehicle programs once the deal is completed.

Stork PWV is a small project management subsidiary of Dutch engineering and technical services company Stork, employing about 60 people.

The armored vehicle company's main asset is its responsibility for the Dutch share of the Boxer program. Stork PWV has no manufacturing capabilities and sub-contracts Boxer work to Dutch companies.

One of the main beneficiaries is Dutch Defense Vehicle Systems, owned by Krauss-Maffei Wegmann. It builds elements of the Boxer vehicle alongside assembly and integration work primarily connected to the Fennek reconnaissance vehicle being built for the Dutch and German armies.

The Dutch Army has ordered 200 Boxer eight-wheel-drive armored vehicles at a cost of some 500 million euros ($770.1 million). The German Army has ordered a further 272 vehicles. Deliveries to the Dutch Army start in 2011, two years after Germany accepts the first of its vehicles.

The Dutch already operate a number of German built armored vehicles, including the Leopard 2 main battle tank, the Fennek, the PzH 2000 self-propelled howitzer and the Fuchs/Fox transport vehicles.

Rheinmetall says that aside from increasing its weight in the Boxer program, the deal will strengthen its position in the Netherlands to support upgrading capabilities and further enhancing operational readiness.

Last month, Rheinmetall announced it was acquiring a 51 percent stake in South Africa's Denel Munitions.

Source: A. Chuter - Defense News

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