Volkswagen plant in Germany to become defence production site

German authorities plan to convert Volkswagen’s Osnabrück plant into a production site for the defence industry, Deutschlandfunk reports.

The report said Volkswagen will sell the facility to the state of Lower Saxony and Israeli investor Aurelius Capital.

After vehicle production is scheduled to end in 2027, the site is expected to be gradually transformed into a centre of expertise in the defence sector.

In the coming years, the plant is expected to begin producing air-defence missile systems manufactured by Israeli defence company Rafael, which produces the Iron Dome air-defence system.

The Financial Times previously reported that German auto-parts manufacturers are increasingly shifting toward industries with stronger growth prospects, including the defence sector.

By Bakhtiyar Abbasov