Spain Commissions Santa Bárbara to Manufacture Leopard 2 Tanks to Avoid Lawsuits

The Spanish Ministry of Defense has commissioned Santa Bárbara Sistemas to manufacture new Leopard 2 tanks.

According to sources at Articulo14, this decision is an attempt to ease tensions. The company had previously announced its intention to sue over large artillery contracts.

The tanks will be manufactured by Tess Defence. Santa Bárbara owns 16% of the company, while Indra owns 51%. Despite this, Santa Bárbara will reap the greater benefits, and its technology will be key.

Santa Bárbara plans to challenge two contracts worth a total of €7.2 billion awarded to Indra and Escribano. In its lawsuit, the company is asking for a suspension of €3 billion in state loans granted to these companies at 0% interest.

The company claims that it was not even invited to participate in the tender. The contracts are for new wheeled and tracked artillery systems.

On December 22 last year, the Ministry of Defense officially awarded the Indra-Escribano consortium a €2.6 billion contract for wheeled self-propelled artillery. A separate contract was signed for tracked self-propelled guns worth €4.5 billion.

Santa Bárbara believes that loans to competitors give them an unfair advantage. This limits its ability to operate in the market for the next ten years. The company emphasizes that it is the only manufacturer of artillery systems in Spain and a leader in the production of combat vehicles.