The three parties have signed a Statement of Intent to develop the site into a centre of excellence for security and defence technologies. The document sets out their shared ambitions but remains subject to detailed negotiations, regulatory assessments and internal approvals.
The initial project would focus on the potential development and production of components for air defence systems based on proven technologies. Rafael intends for the technology at the centre of the partnership to be fully produced in Germany.
The plan offers a potential new industrial role for a site with a long manufacturing history and an experienced workforce. Osnabrück employees are expected to contribute expertise in advanced manufacturing, quality assurance and industrialisation.
“Through this Statement of Intent, we are opening up a genuine future perspective for Volkswagen’s Osnabrück site,” Lower Saxony Minister-President Olaf Lies said. “This agreement reflects a shared conviction: Osnabrück possesses the industrial foundations needed to reposition itself in a forward-looking sector.”
Lies said the partnership offered a route to preserve skilled employment while strengthening Germany’s defence-industrial capacity. “This partnership creates realistic opportunities for long-term, highly skilled employment at a location that has stood for industrial excellence for 125 years.”
The proposed conversion comes as Germany and other European countries seek to build greater capacity in security and defence manufacturing. “Germany and Europe must strengthen their capabilities in the security and defense industry and become more independent,” Lies said.
Rafael will bring its defence technology and experience in developing advanced systems to the partnership. Aurelius will provide investment capacity and access to an international network of experienced investors, while Lower Saxony intends to support the transformation as a shareholder.
“The technology at the heart of this partnership is built for the defense of today, tomorrow, and well beyond,” Rafael President and Chief Executive Officer Yoav Tourgeman said. “Our outstanding combat proven technology evolves constantly in order to be ahead of the threats, so that highly reliable defense will always be provided.”
Tourgeman described the initiative as the basis for a lasting industrial relationship with German partners. “Today we are building a long-term industrial relationship with our German partners with the idea that the technology will be fully produced in Germany, to protect Germany and Europe.”
Rafael has operated in Germany for more than 20 years through Dynamit Nobel Defence, EuroSpike and EuroTrophy GmbH. The Osnabrück project would expand that established presence and deepen German-Israeli industrial cooperation.
Lower Saxony will remain involved as the parties assess the commercial, industrial and regulatory requirements for the project. Volkswagen AG is supporting the broader strategic realignment of the Osnabrück site.
