Scholz and Kretschmer Celebrate Transition to Armor Production in Görlitz

A significant shift is underway in Görlitz, Saxony, as the historic industrial site transitions from railway production to the manufacturing of military vehicles. This change marks a pivotal moment in the region's industrial landscape, with the defense company KNDS taking over operations previously held by Alstom.

The official announcement of this transition has been long anticipated. Initially scheduled for August, the event will take place on February 5, when Chancellor Olaf Scholz and Saxony's Minister-President Michael Kretschmer will discuss the new direction for the facility. This site, which has been producing railcars since the 19th century, will now focus on the production of tanks and other military vehicles.

Approximately 700 employees currently working for Alstom are expected to transition to KNDS, which assures job security in a time of uncertainty. Alstom recently announced the closure of its Görlitz facility, citing ongoing losses and a strategic realignment of its operations. The company is shifting its production of rail vehicles to other sites, including Bautzen and Salzgitter, following significant financial struggles.

KNDS, formed from the merger of Germany's Krauss-Maffei Wegmann and France's Nexter a decade ago, specializes in the production of armored vehicles and military systems, including the Leopard battle tank and Puma infantry fighting vehicle. The company is expanding its capacity in response to heightened demand for military hardware, driven by geopolitical tensions following Russia's invasion of Ukraine.

Defense Minister Boris Pistorius highlighted Germany's leadership in tank manufacturing, noting recent investments aimed at enhancing production capabilities across various facilities. Currently, KNDS employs about 6,000 people in Germany, with significant operations in Munich and Kassel, where they produce critical components for armored vehicles.

The transition in Görlitz will involve the establishment of a transfer company to assist employees in adapting to their new roles within the defense sector. While many workers will have the opportunity to move to KNDS, others may receive relocation offers to different Alstom facilities. Discussions are ongoing regarding severance packages for those who choose not to transition.

This development reflects broader trends in the defense industry, where companies are increasingly pivoting to meet new security demands. The future of the Görlitz site is now set to align with these changing priorities, ensuring continued industrial activity and employment opportunities in the region.