Renk Expands Operations to Italy Amid Growing Defense Partnerships

Rome, Italy — In a strategic move underscoring the burgeoning defense collaboration in Europe, German propulsion company Renk has announced the establishment of a new subsidiary in La Spezia, Italy. This announcement comes just one week after defense heavyweights Rheinmetall and Leonardo revealed plans to manufacture tanks and infantry fighting vehicles for the Italian army in the same city.

Renk’s decision to set up shop in La Spezia positions the firm within a key region that is not only close to Italian military customers but also to vital partners in the defense sector. The company, which already supplies gearboxes for Rheinmetall from its facilities in Germany, aims to capitalize on Italy’s impressive €23 billion ($25 billion) defense contract for military vehicles.

“By establishing a local presence, we are closer to Italy’s technological and industrial base – a cornerstone of European defense. This positions Renk to adeptly address the current and future demands of Italian customers and partners,” stated Susanne Wiegand, CEO of Renk Group AG.

This development follows an announcement from Leonardo and Rheinmetall regarding their joint venture, which will operate out of La Spezia. The venture aims to produce 1,050 new infantry fighting vehicles based on Rheinmetall’s Lynx platform and 132 main battle tanks based on the Panther KF51, which is still under development. Leonardo and Rheinmetall are set to share work equally, with 50% assigned to Leonardo, 40% to Rheinmetall’s operations in Germany, and the remaining 10% allocated to Rheinmetall’s facilities in Italy.

The La Spezia facility has ample space for the construction of new production lines and is historically significant, having previously been the site of tank production operations under Oto Melara, a former subdivision of Leonardo now fully integrated into the company.

Renk has also made notable appointments for its new Italian division, hiring Sergio Rizzi, a former Hensoldt executive, as CEO, while Retired Adm. Pier Federico Bisconti, a former deputy national armaments director in Italy, will take on the role of chairman.

With reported revenues of €926 million in 2023, Renk’s product portfolio includes gear units, transmissions, power-packs, and hybrid propulsion systems, further solidifying its potential impact on Italy’s defense landscape.

As Italy enhances its military capabilities and forms strategic alliances with leading defense firms, Renk’s expansion reflects a growing trend toward localized production to meet national and regional defense needs.

Tom Kington is the Italy correspondent for Defense News.