General Dynamics Ordnance and Tactical Systems and Rheinmetall Defense, which has headquarters in Dusseldorf, Germany, said they formed a joint venture company for the endeavor. The company is to be called Defense Munitions International LLC.
Defense Munitions International will combine the parent companies' tank ammunition expertise and activities to develop and market new and existing 120mm kinetic energy and multipurpose cartridges.
Joint development work, however, will be conducted on a selective basis and production of select cartridge types and production of 120mm practice ammunition will not be part of the deal.
"This pioneering joint venture is a transatlantic extension of our chosen policy of internationalization," said Armin Papperger, member of the executive board of Rheinmetall AG said. "Thanks to DMI, we will be able to respond better to our global customer base's desire for an increased product portfolio in the future as well as providing an expanded set of services.
"Our strategic relationship with General Dynamics, a joint venture for marketing and producing tactical tank ammunition, is the logical outcome of over 10 years of working together successfully. By joining forces, we aim to take the lead in the global market for tank ammunition."