(Reuters) -French train maker Alstom has agreed to sell its Görlitz plant in Germany to defence equipment maker KNDS, the companies said on Wednesday.
KNDS will start using the plant this year to produce assemblies for the Leopard 2 battle tank, the Puma infantry fighting vehicle and variants of the Boxer wheeled armoured vehicle, they said in a joint statement.
Alstom’s production of trams and double-decker trains in Görlitz will either continue or be relocated during the transition, depending on the status of the project, they added.
Alstom and KNDS will continue to employ about 580 staff of the current 700 at the factory, either there or at alternative sites, they said.
The sale is in line with Alstom’s strategy to restructure its German operations to boost competitiveness and profitability, a company spokesperson told Reuters.
“As many sites are ramping up including digital and services capabilities, the carbody shell activity is largely being discontinued,” the spokesperson said.
Alstom has been implementing cost efficiency measures with an aim to focus on activities that offer higher margins and less risk exposure.
The French group is trying to cut debt and improve its finances, stretched in part because of problem contracts it inherited through its 2021 acquisition of Bombardier’s rail business.
The companies did not disclose financial details of the plant sale, which they said was expected to be completed by 2027.
(Reporting by Alban Kacher and Alessandro Parodi in Gdansk, editing by Milla Nissi)
