Volkswagen has found a completely new use for its Osnabrück plant, where vehicle production is set to end next year. The facility is expected to be used for defense-related projects.
According to Reuters, Volkswagen has reached a preliminary agreement to sell its Osnabrück plant to Israeli company Aurelius Capital and the German state of Lower Saxony. Under the deal, the facility will be repurposed for defense production.
According to the works council, the move could help preserve around 1,400 of the plant’s 1,800 jobs. Vehicle production at the site is expected to end in 2027.
The first major project for the facility could involve cooperation with Israeli company Rafael Advanced Defense Systems, which develops air and missile defense systems including Iron Dome, Arrow and David’s Sling.
Volkswagen said the site could potentially produce systems and components for the air defense of Germany and Europe.
The major transformation comes as Volkswagen undergoes a large-scale restructuring. The company has warned that up to four German plants could be closed or repurposed amid weak demand, high costs and growing competition from Chinese manufacturers.
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