Franco-German Defense Group Converts Train Factory for Tanks
The Franco-German defense consortium KNDS has announced plans to transform an old train manufacturing facility in eastern Germany into a state-of-the-art production plant for tanks and military vehicles. This significant development was confirmed during a signing ceremony held in the city of Görlitz, where Chancellor Olaf Scholz emphasized the importance of this conversion for enhancing Germany’s security.
Chancellor Scholz highlighted that the facility, which previously produced train carriages, will begin manufacturing components for the defense sector starting next year. He pointed out that the ongoing conflict resulting from Russia’s invasion of Ukraine in 2022 has underscored the urgent need to bolster European defense capabilities. The factory, strategically located near the Polish border, is a prime example of Germany ramping up its production efforts in response to these security challenges.
As part of the agreement, KNDS plans to finalize the acquisition of the factory from its current owner, French rail manufacturer Alstom, by 2027. The defense group aims to maintain approximately half of the factory’s existing workforce of 700 employees while also creating additional job opportunities across various production sites for some of the remaining staff.
The facility has a rich history, having manufactured rolling stock for over 175 years, dating back to the era of the German Kaisers, and is currently known for producing double-decker train carriages. Under KNDS’s management, the plant will transition to producing crucial components for military vehicles, including the Leopard 2 main battle tank, the Puma infantry fighting vehicle, and the armored Boxer vehicle.
In recent years, Germany has experienced a notable trend of converting civilian production capabilities to support military needs, reflecting the growing demand within the defense industry. For instance, last year, the German defense group Rheinmetall secured an agreement to onboard 100 employees from a plant that was scheduled to close, owned by automotive supplier Continental. Furthermore, reports indicate that various defense companies are exploring opportunities to utilize some Volkswagen factories as the automaker grapples with production cuts.
