Nexter, the French defense company, has partnered with Hyrema of Denmark for a joint bid to receive a contract for replacing Danish armored personnel carriers.

Under the agreement signed Tuesday, Hydrema will establish and operate a production line in its Stovring facility with Nexter support. The line is for the final assembly and integration of systems of APCs should the partnership win the government contract.

Hydrema, under an existing accord with Nexter, will also perform in-country logistic support of Nexter's CAESAR self-propelled howitzer if the weapon system is selected by the Danish government as part of an ongoing competition for artillery.

"In addition to this key partnership with Hydrema, Nexter's industrial cooperation efforts in Denmark already resulted in close to 40 Danish companies being pre-selected as suppliers or having already been integrated into Nexter's global supply chain," Nexter said. "TenCate, Prodan, AKS, Multicut, Linak, and Weibel, to name a few, have already been awarded contracts in 2014 for programs outside of Denmark."

The total value of the transfer of production and technology to Hydrema has been pre-approved by the Danish Business Authority.