Historic German Train Factory to Begin Manufacturing Tank Components Under New Defense Deal
Oman Horizon Bulletin

Görlitz, Germany – A historic train factory in the eastern German city of Görlitz is set to transition from producing railway carriages to manufacturing military vehicle components under a newly signed deal between Franco-German arms group KNDS and French railway manufacturer Alstom.
The agreement, announced on Wednesday, marks a significant shift in the factory’s operations. By 2027, KNDS will take over the facility, ensuring its continued industrial relevance despite Alstom’s departure from Görlitz.
Preserving Industrial Jobs Amid Transformation
Speaking at the factory, German Chancellor Olaf Scholz highlighted the importance of maintaining employment opportunities in the region. “It is very good news that industrial jobs will be preserved even though Alstom is leaving Görlitz,” Scholz stated.
The factory has a 175-year history in rolling stock manufacturing, dating back to the era of the German Kaisers. It has been a key player in producing double-decker carriages for various railway projects.
While the facility will continue its train carriage production to fulfill existing orders in Germany and Israel, the transition to defense manufacturing will begin shortly after.
Production Shift to Military Vehicles
From 2027, the Görlitz factory will begin producing components for:
- Leopard 2 main battle tanks – One of the most advanced tanks in the world, used by several NATO countries.
- Puma infantry fighting vehicles – A state-of-the-art armored vehicle used by the German military.
- Boxer armored fighting vehicles – A versatile, multi-role armored vehicle deployed by various European nations.
Strategic Move for European Defense Industry
The transition of the Görlitz plant into the defense sector aligns with Germany’s broader strategy to strengthen its military manufacturing capabilities. As European nations focus on enhancing defense production, this deal reinforces the region’s defense infrastructure and supply chains.
The move also signifies a broader shift in European industrial policy, where facilities traditionally associated with civilian industries are adapting to meet the growing demand for defense and security equipment.
Looking Ahead
With KNDS overseeing operations, the Görlitz factory is poised to play a key role in Europe’s military equipment supply chain. This development ensures job security for workers while supporting Germany’s commitment to modernizing its defense sector.
By balancing industrial heritage with evolving defense needs, the Görlitz plant’s transformation marks a new era for German manufacturing and European security initiatives.
For all the latest news from Oman and GCC, follow us on Instagram, like us on Facebook & subscribe to our YouTube Channel, which is updated daily.Oman Horizon Bulletin