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Challenger 3 Main Battle Tank - Program

Challenger 3Assessment-phase contracts were awarded to BAE Systems and Rheinmetall in December 2016. Plans for both companies to compete for the programme were overtaken by BAE and Rheinmetall forming a joint venture company: Rheinmetall BAE Systems Land (RBSL) 01 July 2019. At DSEI 2019, the Rheinmetall BAE Systems Land (RBSL) joint venture business demonstrated its expertise in the world of armoured combat vehicles. On show is RBSL’s demonstrator for the Challenger 2 Life Extension Project (LEP), which includes improved fightability, survivability, surveillance & target acquisition, and lethality with the integration of DM11 programmable High Explosive (HE) tank ammunition. RBSL's position as a UK-based, experienced and skilled Original Equipment Manufacturer is a key aspect of the proposal. Through delivery of Challenger 2 LEP, RBSL intends to support the UK's prosperity agenda with a vibrant supply chain across the UK; increasing jobs, manufacturing and engineering as a sovereign capability.

Rheinmetall BAE Systems Land (RBSL) is a UK-based combat vehicles design, manufacturing and support business. Headquartered in Telford in the West Midlands, RBSL employs a skilled workforce, located in Telford as well as at sites near Newcastle, Bristol and in Dorset. RBSL’s employees work continually to protect people and national security by supplying the most advanced products and in-service support available. As a Joint Venture, RBSL combines Rheinmetall’s military vehicles technology and products, with the capabilities and products from BAE Systems including Trojan, Terrier, Warrior, military bridging and the AS90 self-propelled artillery system.

Düsseldorf-based Rheinmetall AG, which is listed on the stock exchange, is an integrated technology group that stands for a substantial, internationally successful company in the markets for environmentally friendly mobility and threat-appropriate security technology. With innovative system solutions for the entire drivetrain and comprehensive lightweight engineering expertise, Rheinmetall Automotive is a world-leading automotive supplier in its branch. As a leading European systems house for army technology, Rheinmetall is a longstanding partner of the armed forces. Rheinmetall AG played an integral part in developing and perfecting both the Leopard 1 and Leopard 2 main battle tanks, cooperating closely with industrial partners. Tried and tested around the globe, Rheinmetall’s 120mm smoothbore weapon and ammunition technology has been continuously optimised, and Rheinmetall continues to develop next generation weapon solutions.

For many decades BAE Systems has been the UK’s premier land systems manufacturer and source of technical support. BAE Systems companies have produced the Challenger 2 main battle tank, the Warrior infantry fighting vehicle as well as the Terrier combat engineering vehicle. BAE Systems Land UK is currently supporting the British Ministry of Defence and British Army in maintaining and upgrading the operational effectiveness of the UK’s combat vehicles and systems. It has over 400 employees devoted to military vehicle systems, primarily in Telford in the West Midlands.

On 07 May 2021 the British Army unveiled its new Challenger 3 Battle Tank, which is designed to be one of the most advanced tanks in the world. The MOD is spending 800 million pounds on a fleet of 148, with the first vehicles expected to come into operation from 2027. The MOD then aims for the tanks to be fully operational by 2030.

Against the backdrop of the COVID-19 pandemic this contract award, worth £800m (incl. VAT), marks a significant boost for UK prosperity and economic recovery. The programme will make significant enhancements to the vehicle and provide the British Army with a world-class capability, made in the UK. The upgraded vehicle, to be called Challenger 3, will be a network-enabled, digital Main Battle Tank with state-of-the-art lethality, upgraded survivability, plus world-class surveillance and target acquisition capabilities.

More than 450 jobs will be created and sustained within the UK supply chain, and a further 200 jobs will be created and sustained within RBSL, including 130 engineers and 70 technicians. RBSL will also provide work and training opportunities to 60 apprentices over the next five years. The work will be led out of RBSL’s Telford manufacturing facility with engineering support from Heavy Armour specialists based at Telford and other RBSL sites in Washington (North East) and Bristol. The programme will commence in 2021, with an expected in-service date of 2027.

RBSL will work with suppliers across the UK, further contributing to levelling-up of regional economies. The programme has also prompted a £20m inward investment to RBSL’s Telford facility, ensuring world-class manufacturing equipment and training for employees and apprentices. The Challenger 3 contract will facilitate the UK staying at the forefront of Armoured Fighting Vehicle development and provides the UK with the opportunity to explore new technologies for integration in future capabilities. The programme protects the UK’s national skill base in both defence and engineering sectors, and could enable exports worldwide.

The Challenger 3 programme reached an important milestone 22 January 2024 when the contract was signed for Rheinmetall BAE Systems Land (RBSL) to deliver a new modular armour system on the Challenger 3 Main Battle Tank. Designed by world leading armour experts at Defence Science and Technology Laboratory (DSTL), and jointly developed with RBSL, the new modular armour provides a step change in survivability for the Main Battle Tank. With initial integration trials conducted in 2023, RBSL will now test, manufacture and integrate the new armour onto the Challenger 3 tanks.

The enhanced survivability will provide enhanced protection for soldiers against the most dangerous threats Challenger 3 will face. The investment in this critical capability will deliver for the British Army now and into the future. Challenger 3 will be a key component of the Army’s Future Armoured Brigade Combat Teams and the UK’s contribution to NATO deterrence. The investment in this critical capability will ensure that Challenger 3 is a key component of the Army’s future Armoured Brigade Combat Teams and the UK’s contribution to NATO deterrence now and into the future.

This contract is a key part of the Land Industry Strategy. It is generating British intellectual property, maintaining the national supply chain and securing skills in the UK. It will support up to 58 jobs in Newcastle and Telford during the initial manufacturing and beyond if export orders are secured.

Colonel Will Waugh, Senior Responsible Owner for the Army’s Armour (MBT) Programme: “This contract signature is great news and another step forward in the delivery of the Army’s next MBT capability. The conflict in Ukraine has provided a timely reminder of the threat posed by Russia’s MBTs and other weapon systems. This armour is a world-class sovereign capability that will provide a step change in protecting our soldiers and the survivability of Challenger 3.”

The Challenger 3 programme will not only deliver a Main Battle Tank, it is also regenerating critical industrial capability in the UK, benefitting from the best of British engineering and manufacturing whilst sustaining valuable skills across the country. The enhanced armour contract will deliver a world-class industrial capability for the manufacture of armour solutions.

Colin McClean, RBSL Managing Director said: “The industrial investment that will be realised as part of this contract will see Telford at the forefront of Armour Development and Manufacture. The investment in this critical capability will deliver for the British Army now and into the future. Driving the delivery of the Land Industry Strategy generating British IP, British Supply Chain and British Skills.”

Director Land Equipment, Maj Gen Darren Crook CBE said: “The contract award for next-generation modular armour on the Challenger 3 Main Battle Tank is yet another significant step forward for the programme. Not only does it secure a battle-winning armour solution for the British Army, but it is also great news for British industry. It illustrates our collective commitment to developing and securing skills in the defence sector for future generations, showing the Land Industrial Strategy in action.”



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