Rafael to Convert Volkswagen’s Osnabrück Plant into European Air-Defense Production Hub

Israeli defence contractor Rafael Advanced Defense Systems is set to become the anchor partner in a deal that will see the state of Lower Saxony and Aurelius Capital purchase Volkswagen Osnabrück GmbH and convert the factory into a centre for air-defence and related military equipment. The arrangement, still pending final contracts and regulatory clearance, is expected to safeguard about 1,400 of the 1,800 current jobs.

Rafael’s President Yoav Tourgeman described the move as establishing a long-term production base in Germany for technologies aimed at protecting Europe. Lower Saxony Minister-President Olaf Lies said the agreement gives the site a genuine future, while analysts noted it strengthens Israel’s defence-export links with Berlin and could lead to further contracts with other European nations. The deal follows recent European procurement of Israeli systems, including Greece’s €3 billion Achilles Shield and Romania’s €2 billion SPYDER framework.