15 Sep 2014

A Unique Partnership

KBR and Rheinmetall Defence place joint venture bid for UK Defence Support Group

On 12 September KBR and Rheinmetall Defence submitted a Joint Venture (JV) bid to acquire the Defence Support Group (DSG), a Ministry of Defence (MOD) Trading Fund that provides military vehicle maintenance and repair services to the United Kingdom Armed Forces.

This is a unique partnership, with the right combination of logistics, business management experience and technical expertise in defence land systems to transform and develop the DSG. Under KBR Rheinmetall ownership DSG will become a centre of excellence for defence engineering and remain a trusted partner, implementing the British Army’s strategy for equipment support.

DSG’s highly skilled workforce will remain critical to the company’s future success. Both KBR and Rheinmetall Defence UK are committed to maintaining and developing their excellent reputation, according to Andrew Pringle, KBR Infrastructure, Government and Power, Europe, Middle East and Africa business unit President.

“KBR is confident that its long track record of programme delivery working with the MOD over the last 25 years, including experience in building and operating the existing DSG facility in Camp Bastion Afghanistan, will make for a very strong contender”, Pringle said. “We understand the Army’s requirement for quality services and enhancing capability against a back drop of pressure on defence budgets. With innovative thinking, I am confident we will provide a more efficient, value for money and agile solution.”

He added. “We are delighted to be collaborating on this exciting bid with Rheinmetall, a company with directly relevant expertise and experience. The acquisition provides an excellent opportunity for the DSG to develop new business opportunities and we are certain that our combined capabilities, supported by those of the existing workforce, will make for an unparalleled partnership.”

“Our team believes in the DSG and we want to expand its commercial capabilities” Pringle said. He reiterated that, “above all, the team intends to ensure a smooth transition while maintaining the service for which the DSG is renowned.”

Dr. Deniz Akituerk, Director Rheinmetall Defence UK, said “Rheinmetall is a key supplier to the British Army. The combination of Rheinmetall’s land systems engineering capability, KBR’s unparalleled project management skills and the knowledge and dedication of the DSG workforce makes a compelling case for the acquisition of DSG. We are proud to have the opportunity take on the responsibility of owning DSG along with our partner KBR. Together, we will ensure that DSG remains a flexible and reliable element of the Army support system, whilst we invest in developing the business to address the new sectors in the UK and overseas. We are excited to be working alongside KBR.”

KBR’s Infrastructure, Government and Power business unit, operating from its UK headquarters in Surrey, is a world-renowned project delivery organisation with a robust track record in supplying services to the UK military at home and abroad. Rheinmetall is a leading European Defence Company and one of the leading Automotive suppliers worldwide with an extensive technical and engineering expertise in maintenance, design and manufacturing of military vehicles and weapons systems. The Düsseldorf, Germany-based group is already a key supplier of munitions to Her Majesty’s Armed Forces. Together, KBR and Rheinmetall will form a solid foundation for the acquisition of the Defence Support Group.  

Rheinmetall AG

Head of Press and Public Relations
Oliver Hoffmann
Rheinmetall Platz 1
40476 Düsseldorf
Germany
Phone: +49 211 473-4748
Fax: +49 211 473-4157

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