Czech Republic Awards BAE Systems $2.2 Billion CV90 Contract

The Czech Republic has completed negotiations with the Swedish government, defense procurement organization FMV, and BAE Systems Hägglunds to buy 246 CV90 MkIV infantry fighting vehicles in seven different variants. 

The contract, valued at SEK 22 billion ($2.2 billion), will provide highly-capable vehicles for Czech soldiers while providing Czech industry a significant role in the program.

“As the ninth member of the CV90 User Group, the Czech Republic and its Army will benefit from this combat-proven infantry fighting vehicle with a leading combination of mobility, firepower, protection, and future growth potential,” said Tommy Gustafsson-Rask, Managing Director of BAE Systems Hägglunds, in Örnsköldsvik, Sweden. “This contract also represents a significant win for Czech industry that will last for decades.”

The CV90s will be developed and delivered through an industrial partnership with Czech industry to meet the requirements of the Czech Ministry of Defence and the intention of maintaining national sovereignty for the Czech Republic. The Czech industrial partners will be delivering 40% of the acquisition’s value in development, production and assembly contracts, not including VAT.

The program 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 CV90 MkIV, the latest generation of the leading infantry fighting vehicle, is an ideal, battle-proven vehicle. CV90 has been deployed around the world in coalition operations under both NATO and UN mandates. The vehicle offers superior tactical and strategic capabilities to target a wide range of ground and airborne targets, and exceptional resilience in any terrain and tactical environment.

BAE Systems Hägglunds is said to have produced more than 1,400 CV90s in 17 variants for European countries, five of which are NATO members. Slovakia recently selected the CV90 for its armed forces, joining the Czech Republic as the eighth and ninth member countries, respectively, of the CV90 User Group.