RENK Group has expanded its agreement with KNDS Deutschland to supply transmission systems for the Leopard 2 main battle tank and vehicles within its family. The expanded order is valued at approximately €130 million ($149 million).
The contract covers HSWL 354 hydromechanical transmissions, TCS-354A control units, and G4MA11 gear selectors. Deliveries are scheduled to begin in 2029 and continue through 2032.
The HSWL 354 transmission is a critical component of the Leopard 2’s mobility system, enabling power transmission, steering, and manoeuvring. RENK has supplied the transmission for more than four decades through its longstanding partnership with KNDS.
In June 2026, RENK began production of its 4,000th HSWL 354 transmission, marking a significant milestone in the programme’s manufacturing history.
Supporting Leopard 2 Fleet Modernisation
The expanded contract will support Leopard 2 production for Germany and other NATO members as European countries strengthen their land forces and replenish military equipment.
According to KNDS, armed forces in 23 countries operate approximately 3,300 Leopard 2 tanks and vehicles from the same family. The platform remains an important component of European armoured forces, with several countries ordering new variants and upgrading existing fleets.
Germany has also increased defence spending and procurement efforts following Russia’s full-scale invasion of Ukraine in 2022. Several European countries have supplied Leopard 2 tanks to Ukraine, while other operators continue to expand and modernise their armoured vehicle inventories.
