Volkswagen's Osnabrück plant to be converted into defence manufacturing hub
Volkswagen has reached an agreement with the State of Lower Saxony and investment firm Aurelius Capital on the potential sale of its Osnabrück plant. The site, where vehicle production is being phased out in summer 2027, is planned to be gradually developed into a competence centre for security and defence solutions.
As an initial anchor project, Aurelius and the State of Lower Saxony are planning to cooperate with Israeli defence company Rafael Advanced Defense Systems on the potential manufacture of air defence systems and components for Germany and Europe. While Rafael would contribute technological expertise, the existing Osnabrück workforce would play a central role in establishing and industrialising production, according to a press release from Volkswagen.
Aurelius is described as an international investment company focusing on defence, cybersecurity, artificial intelligence and critical infrastructure, headquartered in Tel Aviv, Israel.
The transaction is subject to final agreements, approval by the relevant corporate bodies and regulatory reviews. More than 1,200 employees are affected.
The Osnabrück agreement arrives in the wake of Volkswagen's broader restructuring, as Evertiq reported last week, which includes cutting 100,000 jobs by the end of the decade and halving the group's model portfolio by 2030.
"With today’s agreement, we are taking an important step towards opening up a new industrial future for the site. Time and again, the employees in Osnabrück have demonstrated just how much expertise, flexibility and commitment this plant has to offer. The site can build on these strengths in the future as well," said Oliver Blume, CEO of the Volkswagen Group.
