In a significant move to bolster its defense capabilities, the Franco-German defense group KNDS has announced plans to transform an aging train factory in eastern Germany into a modern production facility for military vehicles and tanks. The agreement was formalized during a signing ceremony held in Goerlitz, where German Chancellor Olaf Scholz emphasized the strategic importance of this conversion.
Scholz remarked, “Instead of train carriages, parts for the defense industry will be manufactured here from next year,” underscoring how this initiative will enhance security for Germany in a rapidly evolving geopolitical landscape. The Chancellor referred to the need for heightened European defense readiness, a sentiment stirred by Russia’s full-scale invasion of Ukraine in 2022, which served as a wake-up call for nations across the continent to strengthen their military capabilities.
The factory, strategically located near Germany’s border with Poland, has a storied history as a manufacturing site for rolling stock for over 175 years, tracing back to the German Kaiser era. Currently, it specializes in the production of double-decker train carriages. However, with the upcoming transition to military production, the facility is poised to become a key contributor to the German armed forces by producing components for the Leopard 2 main battle tank, the Puma infantry fighting vehicle, and the armored Boxer unit.
Under the terms of the agreement, KNDS is set to finalize the acquisition of the factory from its current owner, the French rail manufacturer Alstom, by 2027. The transition will lead to the retention of approximately half of the factory’s current workforce of 700 employees, while others will be offered positions at different production sites within the KNDS network.
This development aligns with a broader trend in Germany, where the defense industry is increasingly shifting from civilian to military production in response to escalating global tensions. For instance, German defense manufacturer Rheinmetall previously signed a deal to integrate 100 employees from a plant facing closure by the auto supplier Continental. Furthermore, there have been reports that various defense companies are considering proposals to repurpose Volkswagen factories as the automaker navigates its own challenges amid a fluctuating market environment.
The transformation of the Goerlitz factory marks a crucial step in enhancing Germany’s defense posture at a time when military readiness is under heightened focus in Europe.
