Iron Dome Maker Rafael to Produce Air Defense Systems at Former VW Plant

Volkswagen is selling its plant in Osnabrück, Germany, to financial investor Aurelius Capital, with plans to retool the facility for defense production. The Israeli defense company Rafael, known for developing the Iron Dome missile defense system, will be the first to utilize the repurposed factory. The Osnabrück plant will assemble air defense systems and components for Germany and other European nations.

Approximately 1,800 people are currently employed at the Osnabrück facility. Following the transition to defense manufacturing, the company aims to retain around 1,200 jobs. Volkswagen has pledged to support the transition by providing industrial expertise, sharing development and industrialization knowledge, and maintaining some existing infrastructure.

This move marks the first instance of a German automotive plant being converted for defense production. Rafael Advanced Defense Systems is a state-owned Israeli defense contractor renowned for its missile and air defense systems, including the Iron Dome, David's Sling, and Spike missiles. The company has been increasing its European presence due to rising demand for air defense technology.

Previously, the Israeli firm Innoviz secured a significant deal with Volkswagen to supply LiDAR sensors for autonomous vehicles, valued at approximately $4 billion.