A few hours after announcing record orders, German defense manufacturer Renk said Wednesday it will shift production of weapons bound for Israel to the United States in response to Chancellor Friedrich Merz’s decision to suspend arms deliveries to the country.
Renk, which makes tank gearboxes, said the move is designed to bypass new German restrictions. Chief executive Alexander Sagel told the Financial Times that both the company and Germany remain committed to ensuring Israel retains military superiority and deterrence capabilities, which “are not only needed in Gaza but also at other borders.”
“It is also clear that we are discussing a plan B. The plan B is that we relocate production of these specific transmissions to the U.S.,” Sagel said. He added that Israel accounts for roughly 2–3% of the company’s portfolio.
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Merz announced late last week — without consulting his cabinet or party colleagues — that he was halting all arms shipments to Israel intended for use in the Gaza war. He cited concerns that the war was fueling domestic instability in Germany and other European Union countries.
The decision sparked anger within his own party and its Bavarian sister party, the CSU. Senior figures in both accused Merz of undermining Germany’s historic responsibility for Israel’s security, rewarding terrorism and ignoring the fact that Berlin relies more on Israel for security and intelligence than the other way around.