Defense company KNDS to set up a subsidiary in Ukraine

The Franco-German arms manufacturer KNDS (KMW+Nexter Defense Systems) will set up a subsidiary in Ukraine.

French Defense Minister Sébastien Lecornu announced this on Twitter (X).

The enterprise will manufacture ammunition and repair equipment.

This decision was agreed during talks between German Defense Minister Boris Pistorius and his French counterpart Sébastien Lecornu in Berlin on Friday, March 22.

“Co-production in Ukraine: KNDS will set up a subsidiary that will best meet the needs of the Ukrainian army,” the statement reads.

The French Minister noted that the KNDS plant would produce ammunition and spare parts for the maintenance of German and French armored vehicles and weapons’ systems already in service with the Ukrainian Defense Forces.

“We, France and Germany, both want to help Ukraine to make the ammunition production there more self-sufficient,” Pistorius said.

Later, the subsidiary will also be able to produce full-fledged systems from scratch at its facilities.

The French BFMTV clarified that the establishment of the KNDS enterprise in Ukraine was mainly intended to ensure prompt repair of military equipment already delivered by France and Germany. This includes spare parts for the French Caesar wheeled self-propelled howitzers and AMX10RC armored fighting vehicles. As well as German Panzerhaubitze 2000 self-propelled howitzers and Leopard 2 main battle tanks.

The idea is to first prioritize the production in Ukraine of parts that break down frequently, and thus “simplify logistical issues” during the repair and maintenance of the relevant equipment and speed up its return to the battlefield.

As previously reported, France is planning to have some of its arms manufacturers producing military equipment on Ukrainian soil. Defence Minister Sébastien Lecornu noted that the first production facilities were scheduled to start operating this summer.

The governments of Ukraine and France signed a bilateral agreement on security cooperation that provides for the allocation of €3 billion within military assistance during 2024.