Germany plans to produce Iron Dome components at Volkswagen plant
In the city of Osnabrück, Germany, the authorities of Lower Saxony, Israel’s Rafael Advanced Defense Systems and Aurelius Capital signed a letter of intent to acquire a Volkswagen plant. If the agreement is implemented, Rafael will be able to establish production of components for the Iron Dome air defense system in Germany, the Jerusalem Post reports.
The agreement signed at the plant is intended to be used to transform the Osnabrück site into a center for innovative security and defense solutions. The project is to combine German engineering expertise, industrial capital and quality standards.
Next steps
After signing the letter of intent, the consortium is to hold detailed negotiations, assess regulatory requirements and complete internal decision-making procedures. Aurelius Capital, together with the Lower Saxony authorities, is expected to take over the site and develop a new business there.
As the Jerusalem Post writes, the German outlet WirtschaftsWoche had previously reported another option: Volkswagen was to cooperate with Rafael in producing equipment. According to the publication, this plan was blocked by Qatar, Volkswagen’s largest foreign shareholder.
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What products will be manufactured
The Osnabrück plant currently employs 2,300 people. It produces the Volkswagen T-Roc Cabriolet, Porsche Cayman and Porsche Boxster. Volkswagen is reported to be set to leave the site in the second half of 2027.
Tamir interceptors for Iron Dome will not be manufactured at the facility. Instead, it is expected to produce military transport vehicles, launchers, generators and other equipment.
Lower Saxony Minister-President Olaf Lies said the partnership creates opportunities for long-term highly skilled employment at a site with a 125-year industrial history. Rafael CEO Yoav Turgeman called the project part of a long-standing relationship with Germany and said the technology is planned to be manufactured entirely in the country to protect Germany and Europe.
Rafael has operated in Germany for more than 20 years and has subsidiaries there: Dynamit Nobel Defence, EuroSpike and EuroTrophy GmbH.
