Italy Awards Iveco-Oto Melara JV $930M to Modernize Ariete Tanks

Italy has signed a deal valued nearly $930 million with CIO, a joint venture between Italian firms Iveco and Oto Melara, to modernize its Ariete battle tanks.

Inked on August 2, this deal covers upgrade of 90 tanks with an option for another 35 platforms.

Italy has 200 home-built Ariete tanks of which only 50 are still operational.

Last month, Italy’s junior defense minister, Isabella Rauti, told Parliament that the country needs more than 250 battle tanks to meet NATO requirements. Rauti said $4.5 billion would be budgeted for the new buys from 2024, with a total outlay of $8-9 billion envisaged. This plan requires approval from the parliament.

Italy is planning to also buy 133 new German-built Leopard 2A8 combat tanks.

An Italian source familiar with the deal told Defense News that Rome would require Italian industrial input on the Leopard tanks, meaning work share would include Italian firms. As such, Italy was unlikely to finalize the Leopard deal this year, the source added.