FT: Volkswagen will produce Iron Dome for Raphael

The Israeli state defense concern Rafael is at an advanced stage of negotiations to re-equip one of the factories of the German automobile manufacturer Volkswagen to produce components for the Iron Dome missile defense system, the Financial Times reports.

Volkswagen has been experiencing serious economic difficulties in recent years and is considering closing plants in Germany for the first time in its history.

According to the publication, one of the factories scheduled for closure, in the city of Osnabrück in Lower Saxony, will be repurposed into a defense enterprise if an agreement is signed with Rafael. According to the concern’s management, this step will save 2,300 jobs.

The plant is expected to produce trucks that house the Iron Dome batteries, as well as generators to power the system and launchers – but not missile interceptors.

The publication notes that Volkswagen’s major shareholders include the government of Lower Saxony and the Qatar Sovereign Investment Fund, and that the success of the deal will largely depend on the decisions of the concern’s workers, who have their representation in management and have a strong mandate in making business and strategic decisions.