The Czech Republic has agreed to a $2.2 billion take care of BAE Systems for the procurement of 246 CV90 infantry fighting vehicles, the corporate said Wednesday.
The contract follows negotiations between the Czech Republic and Sweden, where BAE Systems Hägglunds business, which builds the CV90, relies.
“Because the ninth member of the CV90 User Group, the Czech Republic and its Army will profit from this combat-proven infantry fighting vehicle with a number one combination of mobility, firepower, protection, and future growth potential,” Tommy Gustafsson-Rask, managing director of BAE Systems Hägglunds, said in a press release. “This contract also represents a big win for Czech industry that may last for a long time.”
BAE Systems announced last December that the Czech Republic and Sweden had signed a memorandum of understanding to start negotiations on a CV90 procurement deal, initially stating there was an aim to succeed in an agreement for 210 vehicles (Defense Each day, Dec. 21 2022).
The CV90s in the brand new deal might be “developed and delivered through an industrial partnership with Czech industry,” BAE Systems said Wednesday, with defense firms within the country accounting for 40 percent “of the acquisition’s value in development, production and assembly contracts, not including [value added tax].”
“This system also offers future industrial opportunities that represent significant monetary value well beyond the flow down of contracts to Czech industrial partners. The contract will bolster the local defense sector, granting access to BAE Systems’ global supply chain, expanding opportunities for cooperation, and enhancing local competitiveness,” the corporate said in a press release.
The Czech Republic will receive CV90s in the newest MkIV configuration, which BAE Systems said “offers superior tactical and strategic capabilities to focus on a wide selection of ground and airborne targets, and exceptional resilience in any terrain and tactical environment.”
The brand new take care of the Czech Republic follows Slovakia’s $1.4 billion award to BAE Systems in December for 152 CV90s, becoming the eighth international operator of the combat vehicle.