BAE Systems continues to negotiate with representatives of the Czech defence industry to reach and exceed the 40% industrial cooperation level in the programme for the delivery of new CV90 advanced infantry fighting vehicles to the Czech Republic.

According to information on the progress of the negotiations so far, which was presented to the government by the Minister of Defence Jana Černochová, more than 30 companies from the Czech defence industry will be involved in the delivery of the Swedish CV90 infantry fighting vehicle. The Minister's material also states that the state-owned company VOP CZ will be significantly involved in the entire production process. The Ministry of Defence has long demanded the involvement of Czech industry at a level of at least 40% of the total contract price, and this share has also been declared by the Swedish side in the negotiations. Tomáš Kopečný, deputy for management of the Industrial Cooperation Section of the Ministry of Defence, has previously stated that up to 18,000 jobs in various regions of the Czech Republic may be involved in the entire contract. Its value, including multiplier effects, is estimated by Ernst & Young at more than CZK 56 billion.

Picture: BAE Systems is continuing negotiations with representatives of the Czech defence industry to achieve and exceed the 40% industrial cooperation level under the programme to deliver new CV90 advanced infantry fighting vehicles to the Czech Republic. | BAE Systems

"We remain fully committed to our strategy of working closely with Czech industry and are ready to work with them to develop new capabilities for the development, production and support of advanced combat vehicles such as the CV90 by being involved in all phases of its production and subsequent life cycle," said Tommy Gustafsson-Rask, president of BAE Systems Hägglunds. "We also intend to offer the Czech industry and academia the opportunity to participate in the ongoing technical development of the CV90 platform for all user countries," he added.

BAE Systems' cooperation with Czech industry is based on five main pillars, which will be the focus of the cooperation: transfer of jointly developed technologies, vehicle development, production and lifetime support, as well as innovation based on the specific requirements of the Czech Republic. As part of its proposal for the Czech Republic, BAE Systems plans to contract the production of some CV90 components, including final assembly of the vehicles in the Czech Republic.

"In our model, industrial cooperation is not just a question of providing opportunities for vehicle assembly. We really want to involve the local industry in the vehicle development and production process and through this collaboration bring more highly skilled processes to the Czech Republic. We are already convinced of the capabilities of Czech engineers and experts and look forward to working with them in this programme," explains Gustafsson-Rask.

Picture: As part of its proposal to the Czech Republic, BAE Systems plans to contract for the production of some CV90 components, including final assembly of the vehicles in the Czech Republic. | BAE Systems

BAE Systems' industrial cooperation model will also create opportunities for new Czech patents, products, as well as hardware and software solutions for a wide range of products, with the newly developed intellectual property remaining in the hands of Czech industry. The return on investment obtained under a programme such as CV90 can be measured in many different ways. It helps to develop and strengthen the domestic defence and engineering industry with an increased emphasis on innovation and the development of new technologies.

BAE Systems has already established a collaboration with the Czech Technical University (CTU) in Prague focused on cyber security for military platforms. The company would like to expand this collaboration to include the development of artificial intelligence and automated solutions.

BAE Systems has also suggested that the Ministry of Defence could work with Czech industry to build a Global BattleLab training and development centre for CV90 vehicles in the Czech Republic. The centre would serve all CV90 IFV users from around the world and help to further improve the technical capabilities of the platform through the knowledge and skills of Czech experts. This facility would serve as an important tool to deepen international cooperation in training, doctrine and tactics development based on the experience (including combat) of existing CV90 users. The combat laboratory could also serve as a key element in the development of future technologies, for example in the field of cyber security and artificial intelligence, in cooperation with Czech academia and universities and Czech industry.

BAE Systems' proven system of industrial collaboration has been able to provide at least the full value of the contract back to the buying nation in all 6 previous CV90 programmes, and generally ahead of schedule.

Picture: BAE Systems has also proposed that the Ministry of Defence could work with Czech industry to build a Global BattleLab training and development centre for CV90 vehicles in the Czech Republic. | BAE Systems

The CV90 Infantry Fighting Vehicle is available in 15 variants and is designed to provide optimum traversability over all types of terrain with the highest level of protection in any tactical environment. The CV90 MkIV offers faster movement and better maneuverability on the battlefield thanks to an advanced electronic architecture that also allows for future capability upgrades as the complex combat environment evolves. A total of nearly 1,300 CV90 vehicles are in service in Denmark, Estonia, Finland, Norway, Sweden, Switzerland and the Netherlands.

The purchase of the tracked IFVs through a direct approach to the Swedish government was approved by the cabinet at its meeting on 20 July 2022. Market consultations with the Swedish and also the Slovak side then started in early September and concern mainly licensing and sub-licensing policy issues, the way the project will be financed, technical parameters, life cycle costs, service and industrial cooperation programme and the structure of future contracts.

On 20 December, the Czech Republic, Sweden and BAE Systems signed a Memorandum of Understanding (MoU) defining the framework for negotiations under the agreement for the delivery of CV90 infantry fighting vehicles to the Czech Army. The contract is expected to be signed in the first half of this year.