Rafael, an Israeli defense company, is taking over a former Volkswagen plant in Osnabrück, Germany, as part of a broader effort by the German government to strengthen its domestic defense industry. The move reflects a strategic shift toward reducing reliance on United States defense support and reinforcing Germany's industrial base.

The facility is expected to produce engines for interceptor missiles used in advanced air defense systems jointly developed by Rafael. Explosive components for missile warheads will be manufactured separately due to security considerations. The expansion underscores growing defense cooperation and increased investment in European-based military production.