A historic train factory in Germany will help build tanks in future as part of a deal between Franco-German arms group KNDS and French railway manufacturer Alstom on Wednesday.

KNDS will complete a takeover of Alstom's train carriage factory in the eastern German city of Görlitz by 2027.

"Instead of train carriages, parts for the defense industry will be manufactured here from next year," German Chancellor Olaf Scholz said at the factory in Wednesday.

Scholz said it was "very good news that industrial jobs will be preserved even though Alstom is leaving Görlitz." 

What will the factory produce?

The factory in Görlitz has manufactured rolling stock for more than 175 years, dating back to the time of the German Kaisers.

It will continue to build double-decker carriages until next year to fulfill outstanding orders in Germany and Israel.

From 2027, the factory will manufacture parts for Rheinmetall's Leopard 2 main battle tank, the Puma infantry fighting vehicle and the Boxer armored fighting vehicle.

Edited by: Louis Oelofse

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