Canada awards contract for Leopard 2 tank maintenance in Gatineau

On September 12, 2024, the Canadian government announced a significant contract award for the maintenance of the Leopard 2 Family of Vehicles, which are crucial to the Canadian Armed Forces (CAF). The contract, valued at approximately $2 billion, has been awarded to KNDS Deutschland GmbH & Co. KG and is set for an initial duration of 6 years and 7 months, with options to extend until March 2036. This initiative is part of Canada's broader defence policy, 'Our North, Strong and Free', aimed at ensuring the military has the necessary resources to operate effectively. The Leopard 2 tanks serve as the main battle tanks for the CAF and are also utilized by several NATO allies. The fleet consists of 103 vehicles across five variants, which are expected to remain operational until 2035. The new contract will consolidate multiple support services into a single long-term agreement, enhancing the operational availability of these vehicles and ensuring they meet NATO commitments. Government officials emphasized the importance of this contract in maintaining a ready and resilient defence force. The Minister of Public Services and Procurement highlighted the necessity of providing modern equipment to the CAF, while the Minister of National Defence underscored the economic benefits that will arise from this procurement, including job creation and advancements in Canadian defence industries. This contract not only aims to sustain the Leopard 2 vehicles but also to foster innovation within Canada’s defence sector through the Industrial and Technological Benefits Policy, ensuring that the country can maintain a robust supply chain for these essential military assets.