Defense: Is the state taking over the tank manufacturer KNDS completely? - Confidential negotiations about emergency deal

Germany and France are debating potential alternatives to fully state-owned German-French tank manufacturer KNDS after its initial botched stock market listing. According to government sources, a plan to make Germany acquire a 40% stake, France 40%, and the remaining 20% go to the stock market has changed. Instead, the government plans to invest directly, aiming to secure influence over the crucial defense supplier.

The families who own the remaining stakes intend to sell their shares. Germany is prepared to gradually reduce its stake to 30% after September, with both the Ministries of Economy and Defense agreeing to this plan. However, the market conditions for defense stocks are currently unfavorable, and a potential second stock listing in September is being considered to achieve the desired state investment.

The Bundeswirtschaftsministerium spokesperson confirmed their intent to acquire 40% of the shares, emphasizing KNDS's importance for Germany's security interests. German Defense Minister Boris Pistorius visited the KNDS factory in Kassel and reiterated Germany's commitment to maintaining key technology under German control, working in tandem with French partners.

KNDS plans to significantly expand its production capacities, aiming to become a leading pan-European supplier of defense systems, with a 100% market share in both Germany and France. The company also intends to build a production facility in the UK and an "nitrogelatin plant" in Italy for munition production. Additionally, KNDS is converting industrial sites from other sectors, with a German-owned factory in Görlitz recently converted for military production, investing 65 million Euros in the transformational process.

The company plans to open a fully integrated production facility in Germany by 2027, further boosting its capacity to meet high demand.