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KNDS Will Buy a Legendary Railcar Plant to Produce Parts For RCH 155 and Leopard 2

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Leopard 2 manufacture at former KMW, now KNDS Deutschland / Photo credit: KNDS via IMAGO
Leopard 2 manufacture at former KMW, now KNDS Deutschland / Photo credit: KNDS via IMAGO

This purchase exemplifies the scale of the West's investment in expanding its defense industries

Arms manufacturer KNDS Deutschland, part of the defense conglomerate KNDS, is planning to acquire a railway car–building plant in the German city of Görlitz and convert it to produce components for Leopard 2 tanks and RCH 155 self-propelled artillery systems. As Spiegel reports, the decision has already been made, and the contract will be signed this Wednesday in the presence of Chancellor Olaf Scholz.

The nuance of the situation is not only that this commitment represents a large-scale "beating of plowshares into swords" in turbulent times but also involves a legendary enterprise with over 150 years of operating history.

Read more: ​KNDS Deutschland's First Project With Ukraine Will Be Gepard With Upgraded Radar
Leopard 2 engine replacement at a technical workshop in Setermoen, Norway / Defense Express / KNDS Will Buy a Legendary Railcar Plant to Produce Parts For RCH 155 and Leopard 2
Leopard 2 engine replacement at a technical workshop in Setermoen, Norway / Photo credit: Norwegian Armed Forces

The said wagon-building plant currently belongs to the French manufacturer of railway equipment Alstom, and it will start its transition at a moderate pace: defense production at the factory in Görlitz should launch only in 2026 and reach full capacity only by early 2030s. The anticipated product range will include only welded assemblies made of armored steel for RCH 155 and Leopard 2 at these initial stages.

Apparently, KNDS Deutschland is taking over this plant to unclog bottlenecks in its production chains. It will help fulfill the commitments before the Bundeswehr, currently counting 132 Leopard 2 tanks and 150 Boxer wheeled armored vehicles already commissioned, plus another 80 RCH 155 units expected to be ordered soon.

Interestingly, the mentioned Alstom company will need a year, too, to wind down the production of railway equipment at the factory, mainly double-decker electric trains and trams, while simultaneously deploying defense production there.

The first time the plans to sell the Goerlitz wagon factory were discussed in public in August 2024, implying that a buyer interested in some relatively free production capacity was found quite quickly. KNDS Deutschland is ready to pay a double-digit amount in millions of euros, and the German government will preserve 700 jobs that feed 5,000 people in this German city.

Separately, Defense Express adds, what makes the railcar factory in Goerlitz truly legendary is the fact during its East Germany era, the enterprise produced many passenger cars now found across Europe, including types coupe, sleeping car, and RIC wagon (for international transportation).

And besides, during World War II, this factory served as a dual-purpose facility for the production of military equipment. In a sense, it has returned to its origins.

One of the RIC wagons for international transportation manufactured by the factory in Goerlitz, now bought out by KNDS Deutschland / Defense Express / KNDS Will Buy a Legendary Railcar Plant to Produce Parts For RCH 155 and Leopard 2
One of the RIC wagons for international transportation manufactured by the factory in Goerlitz, now bought out by KNDS Deutschland / Open-source photo

Earlier Defense Express published an in-depth interview with Ralf Ketzel, CEO at KNDS Deutschland, about the company’s current and prospective projects in Ukraine and in cooperation with the Ukrainian defense industry.

Read more: How KNDS Deutschland Will Work in Ukraine - Exclusive Interview With CEO Ralf Ketzel