DW announced the transformation of the Volkswagen plant into a defense enterprise

The Volkswagen automobile plant in Osnabrück, Germany, will be transformed into a defense industry enterprise. The VW concern, the federal state of Lower Saxony and the Israeli company Aurelius Capital signed a memorandum of intent on the conversion of the site. This was reported on September 7 by the Deutsche Welle radio station (DW, recognized in the Russian Federation as an undesirable organization, and also included in the register of foreign media), citing sources.

"He (the factory. — Ed.) will be converted into a "competence center in the field of defense industry," the publication says.

It is specified that the first project at the new facilities is planned to produce air defense systems of the Israeli company Rafael, which produces complexes for the Iron Dome system. Volkswagen CEO Oliver Blume called the agreement an important step towards creating a new industrial future for Osnabrück.

According to the radio station, the Aurelius Capital foundation, specializing in defense projects, will become the main owner of the enterprise. Lower Saxony will receive a minority stake. The parties plan to agree on the final terms of the deal in the coming months.

It is expected that about 1.8 thousand Volkswagen employees will retain their jobs after the plant is transferred to new owners. The concern itself will completely withdraw from the management of the site.

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Die Welt TV channel reported that Russian Foreign Minister Sergei Lavrov sharply criticized German Chancellor Friedrich Merz. He also expressed outrage at Germany's plans to build up its military potential, noting that he was "shocked" by Merz's intention to turn Germany into Europe's leading military power. Lavrov stressed that such aspirations evoke associations with the country's historical past.

The Berliner Zeitung newspaper reported on August 27 that Merz wants to achieve significant cuts in the European Union budget for 2028-2035, but not to the detriment of the German military budget.