KNDS, the German-French defense group, has taken over a historic train wagon factory in Görlitz, Saxony, transforming it into a production site for battle tanks and armored personnel carriers. The company sealed the deal with French rolling-stock manufacturer Alstom, acquiring the 175-year-old Görlitzer Waggonbau facility.
Previously known for producing double-decker train carriages, the Görlitz plant will now manufacture components for military vehicles like the Leopard 2 battle tank and Puma and Boxer armored carriers. This shift marks a major expansion in European defense manufacturing, with KNDS and Rheinmetall leading the charge.
Alstom had initially planned to shut down the plant by March 2026, relocating production to Eastern Europe. However, the acquisition secures jobs for up to 580 of the plant’s 700 employees—welcome news in the region.
Chancellor Olaf Scholz hailed the deal, calling it a step toward strengthening Germany’s security. Saxony’s premier, Michael Kretschmer, credited Scholz for helping broker the agreement, while KNDS praised the “excellent workforce” and announced plans to invest tens of millions of euros into upgrading production lines.
Not everyone celebrated. Around 100 protesters from left-wing parties Die Linke and BSW, as well as the right-wing Freie Sachsen, gathered in Görlitz, holding signs that read “Peace instead of weapons.”
Formed in 2015 through the merger of Germany’s Krauss-Maffei and France’s Nexter, KNDS is a key player in European military manufacturing. By 2023, it employed 9,500 people and generated €3.3 billion in revenue. With this latest move, the company is cementing its role in Europe’s defense industry while reshaping Görlitz’s industrial future.
