In Germany, Rafael will produce components of the Iron Dome on a former Volkswagen site.
The agreement was preceded by tensions over Qatar's participation in the German manufacturer's capital
Rafael, the state of Lower Saxony, and the Aurelius Capital fund signed a letter of intent on Monday to convert the Volkswagen site in Osnabrück into an industrial center dedicated to defense and security technologies.
The Israeli company plans to manufacture components there for air defense systems, including the Iron Dome. According to information published in Germany, production could begin as early as next year and would involve heavy trucks, launchers, and generators in particular.
The interceptor missiles themselves would not be produced on site.
The project must also make it possible to preserve a significant portion of the 2,300 jobs at the site, which are threatened as part of the restructuring undertaken by Volkswagen.
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The agreement, however, was preceded by tensions surrounding Qatar's participation in the German automaker's capital. According to the German press, the Qatari fund, a shareholder in Volkswagen, had opposed direct cooperation with Rafael and had threatened to block the deal.
An alternative arrangement was ultimately put in place so that Volkswagen would not be directly involved in the partnership with the Israeli company.
The state of Lower Saxony must play a central role in this industrial transformation by participating in the site's oversight and supporting its conversion. Rafael, for its part, will contribute its technologies and experience in air defense systems.
“Today, we are laying the foundations for a sustainable industrial partnership with our German partners,” said Rafael's CEO, Yoav Turgeman. According to him, the objective is to produce these technologies in Germany in order to strengthen “the security of Germany in particular and of Europe in general.”
The project is part of the broad rearmament effort undertaken by Berlin. Germany plans to invest heavily in its defense over the coming years, with particular attention given to air defense capabilities.