Factory in Osnabrueck to be sold to Israeli investment firm, with an initial deal inked to produce air defense system parts for Rafael
German auto giant Volkswagen said Monday that one of its plants would be converted to make defense equipment for the Israeli group Rafael after car production ends there next year.
The struggling carmaker said it would sell the Osnabrueck plant to Tel Aviv-based Aurelius Capital as well as the German state of Lower Saxony, a major VW shareholder, with an initial air defense project planned for Rafael Advanced Defense Systems.
“These plans involve the potential manufacture of systems and components for air defense systems for Germany and Europe,” Volkswagen said, adding the cooperation could pave the way for further such deals.
“With today’s agreement, we are taking an important step towards opening up a new industrial future for the site,” Volkswagen CEO Oliver Blume said. “Volkswagen stands by its responsibility for Osnabrueck.”
