Rheinmetall wins subcontractor role on Norway’s Leopard tank order

(Reuters) – Rheinmetall has been hired as a subcontractor in the Norwegian armed forces’ order for 54 Leopard 2 battle tanks from Krauss-Maffei Wegman (KMW), the German manufacturer said on Friday.

Rheinmetall said the contract was worth 129 million euros ($142.74 million) and could increase by 44 million euros if Norway executes an option to buy an additional 18 tanks.

A key subcontractor to KMW, Rheinmetall will supply components such as main armaments, fire control technology and parts of the sensor suite over a period of around four years, it said in a statement.

Norway had originally planned to acquire 72 tanks, but in recent months focused on a scaled-down purchase after its chief of defence recommended spending more on helicopters, drones and long-range artillery.

($1 = 0.9038 euros)

(Reporting by Andrey Sychev; editing by Rachel More and Jason Neely)