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Israel, Germany explore turning Volkswagen plant into defense hub

The first phase would examine the development and production of components for air defense systems, drawing on Osnabrück’s skilled workforce and existing industrial infrastructure.

By Pesach Benson, TPS

Israel’s Rafael Advanced Combat Systems, the German state of Lower Saxony and Aurelius Capital signed a declaration of intent Monday to explore transforming Volkswagen’s plant in Osnabrück into a center of excellence for defense technologies.

The non-binding agreement would preserve the site’s industrial capabilities while creating long-term employment and expanding Germany’s defense manufacturing capacity.

“Our technology will be fully manufactured in Germany and will contribute to strengthening the security of Germany in particular and Europe in general,” CEO Rafael Yoav Turgeman said.

The first phase would examine the development and production of components for air defense systems, drawing on Osnabrück’s skilled workforce and existing industrial infrastructure.

Lower Saxony Prime Minister Olaf Lies said the agreement comes as Germany and other European countries seek to strengthen their defense industries and reduce dependence on external suppliers.

Rafael, which is owned by the Israeli government, has operated in Germany for more than two decades through subsidiaries including Dynamit Nobel Defence, EuroSpike, and EuroTrophy.