Investing.com -- Alstom (EPA:ALSO), a leading player in the transportation sector, has finalized a deal to sell its rail manufacturing facility in Goerlitz, Germany, to defense consortium KNDS.
The consortium, which is a merger between Krauss-Maffei Wegmann and Nexter Systems, has plans to convert the site into a production hub for battle tanks and infantry fighting vehicles.
The transformation process for the Goerlitz site is set to be completed in 2027, with production scheduled to commence in the same year, as announced by both companies on Wednesday.
The deal is expected to provide a solid future for the facility, ensuring the continuation of employment for between 350 and 400 of the approximately 700 employees currently working at the site.
As part of the agreement, Alstom is also planning to offer jobs to 100 of the remaining employees at other company sites. In addition to this, KNDS may provide job opportunities for another 75 staff members at its other facilities.
The KNDS consortium, which is based in Amsterdam, is a merger between Krauss-Maffei Wegmann and Nexter Systems.
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