German company Renk has said it may shift part of its manufacturing to the United States in order to continue supplying Israel with key military components, after Chancellor Friedrich Merz announced last week an export ban on defence components the Jewish state could use in Gaza.
The Bavaria-based defence contractor, which produces gearboxes for Israeli tanks and armoured vehicles, said it has a duty to help Israel to defend itself. “From the German point of view, we have a responsibility to ensure that Israel is able to maintain its deterrence capabilities. These are not only needed in Gaza but also at other borders,” chief executive Alexander Sagel told the Financial Times. The firm was still assessing the full impact of Merz’s decision last week to halt sales of military goods that could be used in Gaza, Sagel added.
While stressing that Renk would comply with German law, Sagel confirmed that a contingency plan was on the table if Germany’s Security Council upholds the restriction: “The plan B is that we relocate production of these specific transmissions to the US,” he said, noting that Israel accounts for roughly two to three per cent of the company’s sales.
