BAE Systems selected Czech defense firm VOP CZ to provide supporting components for Infantry Fighting Vehicles being built for the Austrian government.

The contract, signed in February, builds on the existing partnership between the two defense manufacturers. BAE Systems and VOP CZ agreed to collaborate in 2016 on replacing the Czech Republic's fleet of BMP-2 armored vehicles with the CV90 Infantry Fighting Vehicle.

Under the terms of the agreement, the Czech firm will cooperate with BAE Systems' Sweden-based subsidiary, BAE Systems Hägglunds. Company officials maintain the pact marks a milestone for the strategic corporate alliance.

"This order is an excellent opportunity to establish working processes and relationships between the two companies well in advance of the far more extensive cooperation required for the BMP-2 replacement program," BAE Systems' Peter Nygren said in a press release.

Nygren went on to add the partnership will be a boon for the Czech economy by adding more jobs in the country's defense sector.

"Developing cooperation with a major foreign defense company is an important part of our company business strategy," VOP CZ state enterprise director Marek Špok said.

The CV90 Infantry Fighting Vehicle was initially developed for the Swedish army in the mid 1980s, and is currently in service with armed forces in Denmark, Finland, The Netherlands and Switzerland.

The vehicle is protected by a steel hull capable of withstanding 30mm armor-piercing rounds. Later variants were developed to provide operators improved protection against mines and improvised explosive devices.

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