Hungary and Rheinmetall to Collaborate on New Main Battle Tank Project

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Hungary has recently announced a partnership with German land systems manufacturer, Rheinmetall, to develop the Panther KF51 main battle tank. This groundbreaking concept was unveiled by Rheinmetall at the Eurosatory trade fair last year and has sparked much anticipation in the military community.

According to a press release dated 15 December 2023, both parties have signed a contract amounting to €288m ($315.6m) in Zalaegerszeg, Hungary, to kickstart the development of this innovative tank. The agreement includes the construction and qualification of a demonstrator vehicle, which will pave the way for full-scale production. Rheinmetall’s collaboration with the state-owned Hungarian holding company N7, who holds a 49% stake in the joint venture (JV) Rheinmetall Hungary, further solidifies the commitment to this project.

Armin Papperger, the CEO of Rheinmetall, expressed his confidence in the Panther KF51, stating that it is “the world’s most advanced MBT” and sets a new standard for combat effectiveness and future adaptability. He also emphasized the company’s dedication to empowering their local JV Rheinmetall Hungary and enhancing the national defence industrial capabilities of their partners.

The Panther KF51 will integrate Rheinmetall’s L55A1 120mm smoothbore gun, which is also featured in the latest variants of the Leopard 2, ensuring logistical homogeneity with Hungary’s existing fleet of four Leopard 2A4HU units. Furthermore, the tank will come equipped with an autoloader and a turret architecture that allows for the subsequent retrofitting of the company’s new 130mm gun, enabling a 50% longer kill range to be achieved with an unparalleled rate of fire due to the autoloader performance.

GlobalData, a leading intelligence consultancy, has reported that the Hungarian Government is in the process of procuring Leopard 2A7+ and additional 2A4 units, with four of the latter being second-hand for training purposes, from the German JV KNDS. This procurement plan also includes the acquisition of Rheinmetall’s Lynx infantry fighting vehicles and Buffalo armoured recovery vehicles, alongside the country’s indigenous Gidran armoured vehicles, to support its MBT fleets.

The military land vehicles sector in Hungary is the highest valued segment in its defence market, with a compound annual growth rate of 2% estimated until 2028, reaching a total value of $838m. This demonstrates the country’s commitment to continuously bolstering its defence capabilities and maintaining a strong presence in the international military arena.

The collaboration between Hungary and Rheinmetall on the Panther KF51 main battle tank project marks an exciting new chapter in the modernisation and enhancement of Hungary’s military capabilities. This new development is set to have a significant impact on the global military landscape and be a testament to the fruitful partnerships formed between nations to fortify their defence capabilities.

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