Construction equipment company BAE Systems has been awarded a contract worth US$2.5 billion for a new $5 billion US military logistics facility in Germany, a US military official said Wednesday.
The contract was signed in December by the U.S. Army and the German Federal Ministry of Defense.
Boeing Co. has signed contracts for the construction of the facility in the eastern city of Würzburg, with a total value of $3.5bn, the German defense ministry said in a statement.
Work on the $5.7 billion facility, which will be the largest in the world, is expected to begin in 2020, the ministry said.
U.S.-Germany cooperation in logistics is expected, with the U,S.
military paying a combined $2.7bn for logistics services, the statement said.
Boeings’ deal with the German government will add to its existing partnership with the Pentagon.
This contract marks the first time BAE has entered into a contract with a U.K.-based company, the defence ministry said, without providing any details.
In recent years, Boeing has worked with the UK and the Netherlands to supply military equipment to U.N. peacekeepers and allied troops in Africa.
Bodys Defense & Security Systems is a joint venture between Boeing Co. and BASF AG, the world’s biggest defense contractor.