Gatineau – As part of Canada’s defence policy, Our North, Strong and Free, the federal government is committed to supporting members of our Canadian Armed Forces (CAF) with the modern equipment they need to complete their missions and keep Canadians safe. Jean-Yves Duclos, Minister of Public Services and Procurement, and Bill Blair, Minister of National Defence, announced that the federal government has awarded a contract to KNDS Deutschland GmbH & Co. KG (KNDS) for the long-term sustainment of the Leopard 2 Family of Vehicles (FoV).
The Leopard 2 is the main battle tank of the CAF. Ensuring our fleet has a consistently high level of operational availability for Canada’s military operations is essential to our national security. The contract is for an initial period of 6 years and 7 months, and includes 4 option periods that could extend the contract until March 2036. The contract has an estimated value of $2 billion (including taxes).
In addition to providing crucial services to the fleet, KNDS will establish a Regional Maintenance Centre located near Edmonton, Alberta, and undertake business activity in Canada as part of the Industrial and Technological Benefits (ITB) Policy. KNDS’ economic commitments are estimated to create or maintain 295 well-paying jobs annually in the Canadian economy and contribute a total of $32.5 million annually to Canada’s GDP over the initial contract period.
“The Government of Canada is committed to providing members of our Canadian Armed Forces with the necessary equipment to carry out missions and protect Canadians. This announcement underscores our commitment to meeting North Atlantic Treaty Organization requirements, while ensuring economic and security benefits for Canada.” – Jean-Yves Duclos, Minister of Public Services and Procurement
“Through our defence policy update, Our North, Strong and Free, we are providing the Canadian Armed Forces with the necessary equipment to maintain a ready and resilient defence force. As Canada’s main battle tank, the Leopard 2 vehicles are an essential part of the Canadian Army. This new sustainment contract is an important step in ensuring the long-term availability of our Leopard 2 Family of Vehicles, allowing them to continue supporting Canadian Armed Forces operations now and into the future.”- Bill Blair, Minister of National Defence
“Today’s announcement underscores our government’s commitment to providing the Canadian Armed Forces with the equipment they need, while ensuring long-term economic benefits for Canadians. Through the application of the Industrial and Technological Benefits Policy, we aim to ensure this procurement will advance Canadian innovation in our world-class defence industries, create high-value jobs and contribute to economic growth in Canada.” – François-Philippe Champagne, Minister of Innovation, Science and Industry