German Defense Contractor Mulls US Shift After Merz Israel Ban

A finished Leopard 2 tank gear transmission in the production hall at the Renk AG plant in Augsburg, Germany.

Photographer: Michaela Rehle/Bloomberg

German defense company Renk Group AG said it might relocate production designated for Israel to a US plant, responding to Chancellor Friedrich Merz’s decision to halt certain arms deliveries to the country.

“We started to develop a plan B because we have long-term delivery contracts,” Chief Executive Officer Alexander Sagel said in a call with analysts for the gearbox and transmission maker’s first-half results on Thursday.