Land defense company Nexter, which produces the Leclerc battle tank, has won a major French maintenance contract for its vehicle.
The French army's DCMAT logistics department and the French Defense Procurement Agency DGA awarded the French state-owned company a long-term post-production supply contract for the Leclerc battle tank that could be worth up to $1.35 billion, Defensenews.com reports.
"The result of two years of preparation, this innovative contract marks a turning point for the support of the French army's 254 Leclerc tanks," the French Defense Ministry said in a statement translated by defense-aerospace.com. "It embodies the will of the Ministry of Defense to ensure the long-term achievement of operational goals, while controlling support costs, as specified in the White Paper on defense and national security and the reform of the operational maintenance of army equipment."
The contract, which was signed on Nov. 19, "also aims to create a partnership approach between the army, DGA and Nexter Systems, in which the latter assumes overall responsibility for supporting the inventory, as well as the primary technical authority," the ministry added.
Services will begin on Jan. 1, valued at $135 million per year; the contract initially spans three years but has annual options for an extension to 10 years.
In addition to maintenance and support, it also covers future replacement of obsolete components and systems, the ministry said in the statement.
Nexter is a key supplier to the French armed forces.
In late August and early September, the DGA purchased 332 VBCI armored combat vehicles built by Nexter and Renault Trucks Defense. It also ordered from Nexter and Eurocopter 25 20mm guns and 15 door mountings as well as their installation on Cougar and Caracal helicopters for a total of more than $30 million.
Nexter has 2,720 employees. It produces weapons and defense equipment for armed forces all over the world. Its most well-known product is the Leclerc battle tank, around 800 of which are in service with the French and U.A.E. armed forces.
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