KNDS to buy German defence equipment manufacturer Alstom

The companies announced on Wednesday that Alstom, a French train manufacturer, has agreed to sell the Gorlitz plant located in Germany to KNDS (a German defence equipment maker).

In a joint press release, KNDS said that it will begin using the plant in this year to manufacture assemblies for the Leopard 2 Battle Tank, the Puma Infantry Fighting Vehicle and variants of Boxer Wheeled Armoured Vehicle.

Depending on the progress of the project, the production of double-decker trams and trains by Alstom in Gorlitz may continue, or it could be moved, according to the company.

Alstom and KNDS said they will continue to hire about 580 of the 700 staff currently employed at the factory or alternative sites.

In a statement, KNDS Chief Operation Officer Florian Hohenwarter stated that "with the new Gorlitz production location in the KNDS network, we expand our capacities with a highly-specialised production facility."

The companies have not disclosed financial details about the deal. They expect it to be completed by 2027. Reporting by Alessandro Parodi, Gdansk; editing by Milla Nissi

(source: Reuters)