The KNDS Defense Contractor controls the business that decided to close the Alstom train manufacturer as part of the cost reduction program.
In the East German City of Gerlitz, the 176-year-old railroad plants will be transferred to the manufacture of ingredients for the major battle tanks of Leopard II and Puma Infantry Combates vehicles. This has been reported by the Financial Times.
It was noted that the KNDS defense contractor was in control of the business, which decided to close the Alstom trains manufacturer as part of the cost reduction program. The KNDS has pledged to save jobs for half of 700 plant employees.
“Personally, I am deeply saddened by the fact that we, as usual, have to make weapons,” said KareSten Libh, three generations whose family is engaged in the factory by making trains and trams.
According to the German Industry Federation, industrial production has been reduced by 11% compared to the covid pandemic level. The situation in the sector is worse than the economy as a whole, which has been sostagnated since 2019. It was the longest disruption of the period after World War II.
As you know, a jump on gas and electricity prices in Ukraine, as well as competition with Chinese automakers, that the vehicle industry, which has always been considered German economic engine, has begun to disappear, especially in the electrical vehicle sector, aggravating the economic situation. The trade war, initiated by Donald Trump, could have complicated it.
The IMF, who in October 2024 predicted the growth of the Germany GDP in 2025 by 0.8%, in January reduced the estimate of up to 0.3%, and yesterday published a zero forecast.
According to the Mayor of Herlits Octavian Ursu, labor in energy -intiansive industries fell 20% compared to pre -war 2021. Re -equipment, initiated by the government, could change industrial situations in other cities. Since 2020, the country’s defense costs have increased by nearly 80%, exceeding 90 billion euros.
Rheinmetall, Diehl Defense, Thestenkrupp Marine Systems and MBDA and four major defense contractors in the last three years have hired more than 16,500 people, increasing their staff by more than 40%.
Companies reported that in 2026 they plan to rent nearly 12,000 people.
Florian Khokhenvarter Khokhenvarter said in February in Gerlitsa that his company chose this plant, as there are already “certainly highly qualified specialists we need for making high parts for our” tanks and BMPs.
Rheinmetall considers the opportunity to buy a Volkswagen plant in Znabruk, which is about to stop working. He and the Henslodt Radar manufacturer have promised to hire nearly 300 employees who were released by Bosch manufacturers and Continental Spare.
Remember, RheinMetall improves gunpowder. The concern that Hagedorn-NC captures, which produces nitrocellose-is a key ingredient for the manufacture of ammunition.
And the German car’s remembrance Volkswagen wants to help strengthen Europe’s potential defense.
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Source: korrespondent
I am David Wyatt, a professional writer and journalist for Buna Times. I specialize in the world section of news coverage, where I bring to light stories and issues that affect us globally. As a graduate of Journalism, I have always had the passion to spread knowledge through writing.