KNDS plans to turn railcar plant into an armored vehicle plant
2 February, 2025 Carriage factory in Gorlitz. Photo: Bombardier The German defense company KNDS Deutschland plans to purchase a railcar manufacturing plant in Gorlitz and convert it to armored vehicle production.
The German newspaper SPIEGEL reported on this. According to the media, the relevant agreement is to be signed on January 5 in the Saxon city of Gorlitz in the presence of Chancellor Olaf Scholz and Saxon Prime Minister Michael Kretschmer. It is reported that the current owner, Alstom, plans to close production in Gorlitz in 2026, while KNDS will gradually launch production at the same time.
According to SPIEGEL, the company is investing tens of millions of euros in the new production.
The first Leopard 2A7A1 tank for the Bundeswehr with Trophy APC. October 2024. Photo credits: hartpunkt/Lars Hoffmann
KNDS wants to use the plant to weld armor steel hull elements required for the production of Leopard 2 tanks, RCH155 self-propelled artillery systems and Boxer infantry fighting vehicles.
The new production facility is expected to reach full capacity by the early 30s. The need for the new production facility has arisen due to a significant increase in demand for armored vehicles from both the German army and foreign customers. Over the past three years, KNDS Group has significantly expanded production, and by the end of 2025, the number of tracked and wheeled vehicles produced is expected to double compared to the time before the full-scale Russian invasion.
In the medium term, KNDS plans to produce 500 units of armored vehicles per year. In 2024 alone, the German army ordered 123 new Leopard 2 tanks, and an order for 80 RCH155 self-propelled artillery systems and 150 Boxer wheeled infantry fighting vehicles is expected.
RCH 155 AGM.
Photo credits: Krauss-Maffei Wegmann
The acquisition of the Gorlitz plant is an important step in this strategy. Previously, KNDS had to purchase the armor steel structures produced there from foreign suppliers. KNDS plans to involve the employees of the railcar building plant in production, who will be retrained.
In the medium term, the new armored car plant will employ 350-400 people. However, the conversion of the Gorlitz plant is facing protests from the local Free Saxons political party and the far-left BSW. Opponents of the plant say they are concerned about peace in Germany and claim that Gorlitz could be targeted by Russia because of the armored plant.
Boxer RCT30 IFV.
Photo credits: KNDS
At the same time, the right-wing populist AfD, which has a significant number of supporters there, supports the project, although it also stirs up sentiment against supporting Ukraine. The decisive factor for the AfD's positive position is that 700 industrial jobs will be lost if the plant closes. KNDS Deutschland has recently established a joint venture with a representative of the Ukrainian defense industry.
The newly created company will specialize in the maintenance and repair of military equipment supplied by the German company to the Ukrainian Defense Forces.