Volkswagen signs deal to produce equipment for Israeli defence group Rafael

 Israeli Advanced Defense Systems “Rafael”, Lower Saxony and Aurelius Capital inked a joint declaration to turn Volkswagen’s Osnabrück plant into a place to develop security and defense technologies.

The new plant will be dedicated to Rafael to produce air-defense components in Germany. The German auto giant said it could turn one of its plants after car production ends there next year.

The declaration was signed today, Sept. 7, and outlines readiness to establish a strategic partnership and turn the Volkswagen plant into a center of excellence for innovation in security and defense.

“The technology will be fully manufactured in Germany and will contribute to strengthening the security of Germany in particular and Europe in general,” Rafael CEO Yoav Turgeman announced during the signing ceremony.

It is worth noting that Lower Saxony will be a shareholder and support the conversion process, media reports confirmed on Monday.

Nonetheless, earlier Volkswagen wanted to make a deal with Israel’s defense company Rafael, but the project was opposed by Qatar Investment Authority, which is Volkswagen’s major shareholder with 10.4 percent of the company’s shares.