Volkswagen Group, the state of Lower Saxony, and Israeli investment firm Aurelius Capital have signed a memorandum of intent to convert the Osnabrück automobile plant into a defense industry enterprise.
The new facility will function as a “competence center in the field of defense industry,” according to sources. Initial production targets air defense systems developed by Rafael, an Israeli company specializing in components for Israel’s Iron Dome missile defense system.
Volkswagen CEO Oliver Blume characterized the agreement as an important step toward creating a new industrial future for Osnabrück. Under the deal, Aurelius Capital will become the majority owner of the enterprise, with Lower Saxony holding a minority stake. The parties plan to finalize terms within months.
Approximately 1,800 Volkswagen employees are expected to retain their positions following the plant’s transfer to new ownership. The company itself will cease managing the site.
