Rafael and VW agree deal to produce Iron Dome parts

A deal between Israeli firm Rafael Superior Protection Programs and German automobile big Volkswagen, which can embody the manufacturing of elements for the Iron Dome air protection system at a manufacturing facility within the west of the nation, is “near being signed” and there’s already a written settlement between the events, German media shops reported right now.

In accordance with reviews, Rafael CEO Yoav Tourgeman visited Germany final week and met with authorities officers and senior firm executives to obtain remaining approval for the transfer. A senior Israeli official had beforehand advised “Globes” that he estimates that the German authorities will assist the transfer, amongst different issues, as a consequence of its shut cooperation with Israel on air protection points.

In latest months, reviews have emerged in Germany and the UK that the Israeli government-owned firm, which manufactures weapons and protection methods, will cooperate with Volkswagen, which is in monetary bother, by buying manufacturing actions on the Osnabrück plant, which is scheduled to shut on the finish of 2027. This could imply the layoff of about 2,300, which has sparked tensions between administration and the corporate’s highly effective employees’ committee.

The three way partnership

In latest months, Volkswagen has put the manufacturing facility up on the market and has tried to steer protection corporations reminiscent of Rheinmetall, KDNS and Rafael to take over the plant for the manufacturing of elements for his or her methods together with the truck chassis that carry the methods in addition to different elements. Now, in line with a report revealed right now on the “WirtschafWoche” journal web site, Rafael and Volkswagen have superior to the purpose the place there’s already a written settlement between the events. Final week, Tourgeman met not solely with administration but additionally worker representatives on the firm’s headquarters in Wolfsburg. In accordance with the main points obtained by the journal, Rafael and Volkswagen will set up a three way partnership for “manufacturing from the chassis degree to the elements degree for vehicles that can be used to hold fight methods.”

The plant in Osnabrück can be transformed from the manufacturing of cabriolet vehicles to the manufacturing of vehicles for the Iron Dome system and in addition for different future methods, such because the Iron Beam laser interception system.

A transfer that may save many roles

In accordance with the report, the enlargement of the partnership between the businesses is being examined to incorporate manufacturing of elements in two different Volkswagen crops in Germany, which might be part of the manufacturing chain of the brand new enterprise. The interceptors and a number of the extra delicate know-how can be manufactured in Israel and the US.

Volkswagen CEO Oliver Blume has beforehand acknowledged that the corporate won’t swap to weapons manufacturing however he doesn’t rule out the manufacturing of elements reminiscent of vehicles, command and management autos and autos for safety wants. This place is meant to neutralize ethical opposition from the corporate’s employees’ committees.

Rafael shut to purchasing VW plant

Manufacturing in Osnabrück, in line with the reviews, will for methods utilized in Europe solely. The Iron Dome system has already been bought to Finland and is within the means of being accepted for different European nations reminiscent of Greece. Germany has not but introduced any procurement of the system.

The transfer will save many roles on the manufacturing facility, and can present a lifeline to Volkswagen, which is downsizing and going through monetary difficulties as a consequence of a significant decline in gross sales. Decrease Saxony, from which Protection Minister Boris Pistorius comes, holds 20% of Volkswagen’s shares, and Qatar’s sovereign wealth fund holds about 17%.

Printed by Globes, Israel enterprise information – en.globes.co.il – on Could 13, 2026.

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