Volkswagen has agreed on key terms to sell its Osnabrück factory and convert the German car plant into a defence production hub. Investment company Aurelius would become the majority owner, while Lower Saxony would acquire a stake. Israeli defence company Rafael Advanced Defense Systems is expected to become the facility’s first major industrial partner.Foto: Nigel Treblin/dapd
German auto giant Volkswagen has agreed on plans to sell one of its factories and transform the site into a military production hub, with Israeli arms manufacturer Rafael Advanced Defense Systems set to become its first major industrial partner.
Volkswagen announced Monday that it had reached an agreement with the German state of Lower Saxony and investment company Aurelius on key terms for the sale of its Osnabrück plant. Under the proposed arrangement, Aurelius would become the majority owner, while Lower Saxony would acquire a stake in the facility.
The factory would then be gradually converted from vehicle manufacturing into what Volkswagen described as a “competence centre for security and defence solutions”. Its first anchor project would involve cooperation with Rafael on the manufacture of air-defence systems and components for Germany and other European customers.
