German defense firm Renk explores US production to keep supplying Israel

German defense contractor Renk Group is considering shifting production to the United States to continue supplying Israel with gearboxes for tanks and armored vehicles, despite Berlin’s recent decision to halt arms exports that could be used in Gaza.

In an interview with The Financial Times, CEO Alexander Sagel said the company felt a “responsibility” to ensure Israel could “maintain its deterrence capabilities,” even as it complies with German law. Chancellor Friedrich Merz announced last week that Germany would suspend the sale of certain military products to Israel over its expanded Gaza operations.

“It is also clear that we are discussing a plan B,” Sagel said. “Plan B is that we relocate production of these specific transmissions to the US.” He noted that Israel accounts for 2–3% of Renk’s sales, meaning the embargo could reduce the company’s operating profit by several million euros in the second half of the year.

Sagel acknowledged the “difficult discussion” surrounding Gaza but argued that Israel’s defense needs go beyond the current conflict: “These are not only needed in Gaza but also at other borders.”

The company’s stance contrasts with that of other major German defense manufacturers, such as Rheinmetall, which has stated it is not exporting any weapons to Israel.

By exploring a U.S.-based production shift, Renk signals its intent to preserve a critical defense link with Israel at a time when political pressure in Europe is mounting.

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