Israel's Rafael to Produce Iron Dome Components in Germany

Israeli defense firm Rafael is set to begin producing components for the Iron Dome missile defense system in Germany starting next year, according to reports. The company has reached an agreement to utilize a Volkswagen factory in Osnabrück, a move that marks an unprecedented entry of the Israeli defense industry into the heart of German manufacturing.

The deal involves a consortium that includes the German state of Lower Saxony and a Bavarian investment fund, purchasing the factory from Volkswagen as part of the automaker's broader restructuring plan. Volkswagen itself will not be involved in the defense production. This initiative is expected to save thousands of jobs at the Osnabrück plant, which currently produces convertible models for the T-ROC and is slated to cease that operation by mid-2027.

Secret negotiations over the past few months saw Rafael submit a written offer to acquire the factory's operations for producing Iron Dome components, such as trucks, generators, and launch arrays. The interceptors themselves will not be manufactured at the site. The agreement bypasses potential opposition from Qatar's investment fund, a significant shareholder in Volkswagen.

Lower Saxony's Minister-President, Stephan Weil, is expected to announce the new partnership and confirm that no jobs will be lost. This announcement holds political significance ahead of local elections in the state. The Osnabrück plant, which employs around 2,300 workers, has a long history dating back to the 19th century, originally producing carriages before specializing in Volkswagen convertibles.