Rheinmetall to provide $292m maintenance for Czech tanks
Germany-based Rheinmetall has been awarded a service contract by the Czech Republic Ministry of Defence for the maintenance of Leopard 2A4 main battle tanks and Bergepanzer 3 Büffel armoured recovery vehicles.
The seven-year contract, signed in Prague on 11 August 2025, is valued at up to €250m ($292m).
Rheinmetall Landsysteme, a subsidiary focused on land-based military systems and vehicles, is the contractor for the service.
The contract encompasses a range of services including the supply of spare parts, both initial and follow-up, customer service support, factory and assembly repairs, training services, technical and logistical support, interim infrastructure provision, and project management.
This agreement ensures that the Czech Armed Forces will have sustained operational readiness for their armoured units.
According to GlobalData report, the defence budget of the Czech Republic is projected to register a compound annual growth rate (CAGR) exceeding 9% from 2024 to 2028.
The country is actively updating its military inventory by phasing out a variety of Soviet-era equipment dating back to the Cold War.
Rheinmetall has also committed to engage with the Czech defence industry with plans to cooperate with local firms and award subcontracts.
A letter of intent was signed with VOP CZ, a Czech state-owned enterprise, to facilitate repair and maintenance support that includes transferring necessary expertise.
As part of various agreements, the Czech Armed Forces is slated to receive a total of 42 Leopard 2A4 battle tanks and two Büffel armoured recovery vehicles.
These vehicles have been refurbished by Rheinmetall and delivered as part of arrangements made by both the German federal government and the Czech government.
The Leopard 2A4 tank can reach speeds up to 70km/h with a range of 450km and is equipped with a 120mm/L44 smooth-bore cannon and a 7.62mm machine gun.
In August 2024, the German government facilitated an agreement with the Czech Republic Ministry of Defence, providing 14 Leopard 2A4 main battle tanks and one ARV 3 Buffalo armoured recovery vehicle, as part of a deal involving equipment transferred to Ukraine.
