Rafael Eyes Entry into Volkswagen's Osnabrueck Site for Iron Dome Operations

Israeli defence firm Rafael explores establishing operations at Volkswagen's Osnabrueck site, as Lower Saxony backs plans despite shareholder concerns. The move might involve dividing the site to support Iron Dome component production. Volkswagen faces pressures to restructure amid rising costs and global competition.

The German state of Lower Saxony is supporting plans by Israeli defence company Rafael to potentially establish operations at Volkswagen's Osnabrueck site, sources revealed to Reuters on Thursday.

Various structures to facilitate Rafael's move are being examined, including a possible split of the operation into two entities. Rafael aims to manufacture components for Israel's Iron Dome missile defence system at the site.

Volkswagen is under pressure to restructure due to high costs and competition, with plans that could cost around 100,000 jobs as they overhaul and trim their model lineup in response.