KNDS has been awarded a €600 million contract by the Canadian government to maintain and support Leopard 2 tanks and vehicles based on them.

This was reported by the KNDS press service.

“KNDS Deutschland GmbH & Co. KG, on behalf of the Public Services and Procurement Canada (PSPC) and on behalf of the Canadian Ministry of Defense, is responsible for the maintenance of LEOPARD 2 main battle tanks and vehicles based on them,” the press release states.

“As a system house and manufacturer of the LEOPARD 2, we have felt a strong connection with Canada and the Canadian Armed Forces for almost 20 years. For KNDS, the contract for the long-term support of the systems is an honor and we are aware of our responsibility to ensure the operational capability of 74 LEOPARD 2 battle tanks and 29 family vehicles,” stated Markus Schmidt, Senior Vice President Customer Support.

The contract, signed in Ottawa, includes fleet management, spare parts supply and repairs. In addition, KNDS will also build a maintenance and repair center.

KNDS Canada Inc., an Ottawa-based company established specifically for this project, is responsible for its implementation.

According to the Canadian government, KNDS will establish a Regional Maintenance Center located near Edmonton, Alberta. It will conduct business activities in Canada under the Industrial and Technology Benefits (ITB) policy. KNDS’s economic commitments include the creation or retention of 295 jobs annually in the Canadian economy. The total contribution to Canada’s GDP will reach $32.5 million annually during the initial contract period.

“This interim measure to support our Leopard 2 family of vehicles is a welcome and important step to ensure we can continue to effectively conduct operations and training while planning for the Canadian Army’s future mobility and firepower requirements,” said Lieutenant General Michael Wright, Commander of the Canadian Army.

The contract starts in September 2024 and will run until March 2031, with an option to extend for a further five years.

The Leopard 2 tanks and vehicles based on it are expected to remain in service with the Canadian Army until 2035.

In June 2023, Canada deployed a tank company to Latvia. 15 Leopard 2A4M CAN tanks arrived in Latvia in support of a NATO battle brigade.

“This will greatly enhance the capabilities of the Canadian-led NATO battlegroup in Latvia, ensuring its continued ability to defend our alliance’s eastern flank,” stated Defense Minister Anita Anand.