Hensoldt has secured a contract from Airbus Defence and Space to develop and produce a new Active Electronic Scanning Array (AESA) radar for the German and Spanish Eurofighter fleets.
Together, the Eurofighter partner nations will finance the €1.5bn project.
Under the contract, the company will develop and produce the radars to be first used by the Spanish and German fleets.
Recently, the contract budget was approved by the Spanish Government and the German Bundestag.
The contract covers the development of core components of the Eurofighter radar, including a digital multi-channel receiver and transmitter / receiver modules of the antenna.
The German-Spanish contract will also involve equipping around 130 Eurofighter aircraft of tranches two and three.
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Led by Germany, work under the project will be performed by a Spanish-German industrial consortium.
Other Eurofighter nations, including the UK and Italy, will extend support.
Hensoldt has developed and produced the Eurofighter sensor technology, which is currently in service with the aircraft.
Currently, the company’s radar centre in Ulm employs 2,200 people. This programme period is expected to generate an additional 400 jobs opportunities.
Hensoldt CEO Thomas Müller said: “The fact that Germany and Spain are taking a pioneering role in the modernisation of the Eurofighter is a signal of confidence in European defence cooperation.
“This decision ensures that our armed forces will continue to be able to fulfil their mission in the future while being protected in the best possible way.”