On Friday, December 19, 2025, Tatra Defence (TD), a company within the Czechoslovak Group (CSG) holding group, concluded a strategic contract with KNDS Deutschland for the production of hulls for Leopard 2A8 main battle tanks. The agreement covers the manufacture of 150 hulls and includes an option for up to a further 300. The value of the contract amounts to several hundred million euros, and the agreement concerns one of the most important European programs involving the Czech defense industry. To fulfill the contract, TD will launch two new production halls and hire an additional 300 employees.
Photo: KNDS Deutschland
Under the agreement, TD will be responsible for welding the hulls of Leopard 2A8 tanks, securing all technological processes, and conducting quality control. The project also includes a broad transfer of know-how and involves significant investments in production infrastructure in the Czech Republic. As a result of TD’s involvement in the Leopard tank program, up to 300 new jobs will be created in Kopřivnice, Czech Republic. The company will also build two new production halls and launch a new production line equipped with a modern machining center and characterized by a high degree of robotization and automation. The total value of the investment will exceed one billion Czech koruna (40 million EUR), and its objective is the long-term development of the industrial capabilities of the Czech defense industry.
“This contract confirms the long-term strategy of the CSG Group to systematically develop top-tier manufacturing capacities in the field of land defence technology. Cooperation with KNDS on the Leopard 2A8 programme represents an example of genuine European defence cooperation that strengthens Europe’s security while at the same time bringing significant investments, jobs and technological development to the Czech Republic,” said Jan Marinov, CEO of the CSG Defence division.
The contract forms part of the Czech Republic’s broader involvement in the Leopard 2A8 tank program, which the Czech Republic joined together with other European countries. It is one of the most important European armaments cooperation programs currently under way, significantly contributing to the strengthening of the defense capabilities of NATO and the European Union.
“The strategic partnership with KNDS Deutschland strengthens our position as a reliable and technologically advanced manufacturing partner in Europe. At the same time, it opens up further opportunities for future cooperation on new projects in the development, production and maintenance of armoured platforms,” said Tomáš Mohapl, CEO of Tatra Defence Vehicle.
KNDS management also considers cooperation with the Czech Republic to be a strategic partnership.
“I am pleased that we have a competent partner at our side such as Tatra Defence. Our goal is not to manufacture only for Germany and the Czech Republic, but to build a long-term manufacturing base that contributes to strengthening European defence capabilities,” said Ralf Ketzel, CEO of KNDS Deutschland.
The Leopard 2A8 tank hull production project may influence the development of further cooperation between the CSG Group and KNDS, for example in terms of involving CSG-owned companies in the production of components used in other platforms offered by KNDS, such as Leguan assault bridges, in which the Armed Forces of the Czech Republic have expressed interest. Consideration is also being given to deepening cooperation with KNDS France, especially with regard to Titus wheeled vehicles, as well as other systems.
Leopard 2A8
So far, the purchase of Leopard 2A8 tanks has been decided by Germany (123 units), Norway (54 units), the Kingdom of the Netherlands (46 units with an option for 6 more), Croatia (44 units), Lithuania (44 units), Sweden (44 units plus modernization of 66 older vehicles), and the Czech Republic (58 units with an option for 14 more). Interest in the Leopard 2A8 has also been expressed by Spain, both with regard to the purchase of new tanks and the modernization of its existing Leopard 2E tanks, as well as by Austria.
The baseline Leopard 2A8 is equipped with the Israeli Trophy HV hard-kill active protection system (APS) and has a combat weight of approximately 68–69.5 metric tons. The vehicle is 8.05 m long (11.17 m with the gun), 3.8 m wide, and 2.72 m high (turret roof) or 3.13 m (periscope). Power is provided by a 1,500-horsepower MTU MB 873 Ka-501 diesel engine (on December 8, 2025, Rolls-Royce Power Systems AG received an order for the delivery of more than 300 units), forming part of the EuroPowerPack MT883 Ka-500/501 with a RENK HSWL 354 hydrodynamic transmission featuring four forward gears.
The main armament remains the 120 mm Rh-120/L55A1 smoothbore gun with increased maximum chamber pressure from 670 to 700 MPa (compared to the older L44, which is shorter by 130 cm). It is adapted to fire programmable DM11 ammunition and DM63/DM63A1 armor-piercing fin-stabilized discarding sabot (APFSDS) rounds with a 4.6 kg penetrator core measuring 26 mm in diameter and 685 mm in length, as well as the latest KE2020Neo APFSDS ammunition. Barrel life remains unchanged at 1,500 rounds. The tank has also been fitted with a 20 kW auxiliary power unit (APU), replacing the 17 kW unit used in older vehicles.
The vehicle features improved situational awareness and communications systems, as well as a new fire control system. Reinforced turret roof armor has been applied to provide additional protection against explosively formed penetrators from cluster munitions. In addition, the main armor has been replaced with a third-generation multilayer composite armor made of high-hardness steel, tungsten, polymer filler, and ceramic elements.
A strategic partnership with KNDS Deutschland for the production of Leopard 2A8 tank hulls confirms the long-term role of the Czech defence industry in European cooperation while bringing advanced know-how, new technologies, and jobs to the regions. pic.twitter.com/Q8NKwUHED1
— Czechoslovak Group (@CSG_HOLDING) December 19, 2025