Leopard 2: RENK and KNDS extend gearbox contract by €130 million for the HSWL 354 transmission

Germany’s RENK and KNDS Deutschland have extended their contract for the Leopard 2 tank’s drive system, with the extension worth about €130 million. The announcement was made on October 14 in Washington, where the two companies are exhibiting at AUSA 2026, and the press release is on RENK’s website.

The extension covers HSWL 354 gearboxes, together with the TCS-354A control unit and the G4MA11 gear selector, for the Leopard 2 and other vehicles of its family. Deliveries will begin in 2029 and be completed in 2032. KNDS links the order to the increase in its production and to the expansion of Leopard 2 fleets in Germany and other NATO countries.

The gearbox that has driven the Leopard 2 for 40 years

The HSWL 354 is a hydromechanical transmission, reversing and steering system that has been at the heart of the Leopard 2’s mobility for more than four decades. In June 2026 RENK began production of the 4,000th HSWL 354. According to KNDS, about 3,300 Leopard 2 tanks and family vehicles are in service with the armed forces of 23 countries.

“The Leopard 2 is the backbone of Western armed forces,” said RENK Group CEO Alexander Sagel, adding that the HSWL 354 has ensured the vehicles’ mobility in all conditions for decades. According to him, the extension shows KNDS’s trust in RENK’s technology and ability to deliver, while the two companies help the Bundeswehr and NATO forces acquire the capabilities needed for Europe’s defence.

For KNDS Deutschland, the extension is a “significant milestone for the growth of the Leopard 2 fleet” and strengthens the defence capability of Germany and other NATO countries, said its chief technology officer Axel Scheibel. He called RENK a strategic partner that also supports KNDS in increasing production so that customers receive the best possible equipment on time.

And the Greek Leopards

The Hellenic Army is among the users of the Leopard 2, with the 2A4 and 2A6 HEL versions, and the debate over active protection systems for the Leopard 2A6 HEL is ongoing. The new contract concerns the production of new KNDS vehicles and includes no details on specific customers outside Germany.