JERUSALEM — Israel’s Rafael today announced it has entered into a partnership with the German state of Lower Saxony and investment fund Aurelius Capital, which is “aimed at developing the Volkswagen site in Osnabrück into a center of excellence for innovative security and defense solutions.”
The deal cements expectations that had been circulating since May that envisioned Rafael playing a role at a Volkswagen plant in Germany, with the site potentially tapped to build parts for the Iron Dome system. However, that deal has appeared rocky at times, with reports saying a direct Rafael-VW team up may not be possible.
The solution appears to be a workaround, Instead of VW teaming with or selling to Rafael, the car manufacturer has agreed to sell the Volkswagen Osnabrück GmbH site to a new partnership formed by Aurelius and Lower Saxony, with Aurelius as the majority partner. The pair will create what a statement posted on Volkswagen’s site called “a center of excellence for security and defense solutions. The goal is to secure the location and the majority of its jobs in the long term.”
In turn, the two new partners signed an agreement today with Rafael that will see the Israeli company use the location as a hub to produce its systems. A series of statements from different stakeholders indicate the government hopes to develop into a broader national security production areas.
