Canada plans to maintain Leopard 2 tanks for Arctic defense

KNDS Deutschland GmbH & Co. KG has entered into a major maintenance agreement with the Canadian government for Leopard 2 main battle tanks and their derivatives, confirming a renewed commitment to the Canadian Armed Forces. This comprehensive contract, organized by Public Services and Procurement Canada on behalf of the Department of National Defence, covers the management, maintenance and technical support of the vehicles until March 2031, with an option to extend for another five years. The total value of the contract is 2 billion dollars, which emphasizes the scale and importance of this commitment.

As part of the Strong, Secure, Engaged strategic initiative to strengthen Canada's defences, particularly in the Arctic, a $2 billion contract was awarded for an initial period of six years and seven months, with the option of four extensions, which will help extend support to March 2036. This contract includes not only standard maintenance services, but also the establishment of a regional maintenance center near Edmonton, Alberta. This measure is in line with Canada's Industrial and Technology Advantage policy, which aims to stimulate the local economy by supporting 295 jobs annually and contributing $32.5 million to Canada's GDP annually over the life of the contract.

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The “Strong, safe, engaged” initiative — is Canada's defense strategy aimed at increasing military presence and infrastructure development in the Arctic. This policy is in line with increased geopolitical interest in the region, fueled by climate change that is making the Arctic more accessible. It aims to deter potential threats and strengthen Canadian sovereignty by enhancing surveillance, improving rapid response capabilities and modernizing military facilities to support extended operations in extreme environments.

In addition to security aspects, this initiative also promotes economic development and international cooperation. Canada is committed to working with other Arctic countries and allies to support regional stability while stimulating technological innovation and economic growth through investment in the defense and technology sectors. This program is not limited to defense; it also aims to integrate local communities into security strategies, thus contributing to the sustainable social and economic development of Canada's North.

The implementation of the contract will be managed by KNDS Canada Inc., a purpose-built subsidiary in Ottawa, underscoring the strategic importance Canada in KNDS activities. This strengthened partnership reflects nearly two decades of fruitful cooperation between the KNDS and the Canadian Forces.

The Canadian Armed Forces currently have, according to Canadian authorities, 103 Leopard 2 tanks, 74 of which are primarily intended for combat missions. . According to Military Balance 2023, the country also has:

• 42 Leopard 2A4s used for training;
• 20 Leopard 2A4Ms, which offer enhanced anti-mine protection and are equipped with advanced digital technologies;
• 20 Leopard 2A6 Ms, characterized by an improved gun and increased overall protection.

The support component consists of 12 Büffel armored evacuation vehicles and 23 engineering vehicles, including 18 Wisent 2 capable of evacuation and engineering support missions.