Lower Saxony is currently examining various models to allow the Israeli defense conglomerate Rafael to utilize the Volkswagen facility in Osnabrück. Sources familiar with the discussions revealed to the “Handelsblatt” that Rafael intends to construct components for the Iron Dome air defense system at the site.
However, due to the refusal of the Emirate of Qatar, a major Volkswagen shareholder, to enter into a joint venture, considerations are now focusing on dividing the location into two separate companies.
In this envisioned structure, one entity would house the real estate, buildings, and portions of the existing workforce. Volkswagen would remain involved in this company, while Rafael would not participate. The second company would be responsible for the actual production of the Iron Dome components. This operational unit could potentially include a financial investor alongside Rafael.
Furthermore, the state of Lower Saxony is being discussed as a potential participant. According to the newspaper, the state’s local investment company is evaluating the feasibility of constructing such a framework. Any involvement from the region is conditional upon the presentation of a robust business plan that demonstrates an appropriate return, ensuring that the participation is economically sustainable.
