German town shifts from trains to tanks

For three generations, the Liebigs built railcars in Görlitz. Now, the factory that shaped their lives will produce parts for battle tanks.

Next year, Germany’s oldest train plant will begin manufacturing components for Leopard II tanks and Puma fighting vehicles. The shift follows a takeover by defence contractor KNDS, after train maker Alstom opted to shut the site and move production abroad.

Carsten Liebig, who retired in 2021, welcomed the jobs—but not the reason.

“What’s very sad for me personally is that we still need arms production,” he said.

KNDS has pledged to retain 350 of the plant’s 700 workers. But the loss of an industry that defined Görlitz for 176 years marks more than a transition—it marks the end of an identity.

A second wave of deindustrialisation

Across eastern Germany, the mood is familiar. First came the economic collapse after reunification. Now, post-pandemic inflation and the loss of cheap Russian gas have brought a second reckoning.

Output in Germany’s most energy-intensive sectors has fallen 20% since 2021. A quarter of a million manufacturing jobs have disappeared since Covid began.

But defence is growing. And for some, it offers the only light.

“These kinds of changes to industrial sites will continue,” said Görlitz mayor Octavian Ursu.
“Large investments are flowing into rearmament.”

From auto plants to armour plates

German defence spending has jumped nearly 80% since 2020. Companies like Rheinmetall and Thyssenkrupp have added over 16,000 jobs—and plan 12,000 more by 2026.

KNDS says Görlitz offers what it needs: skilled welders, ready now.
Retraining is the new recruitment. Bank of America analyst Benjamin Heelan notes the shift:

“Companies are targeting workers from shrinking industries—bringing them in, retraining them, repurposing them.”

But the math doesn’t add up yet. One Continental worker has joined Rheinmetall. Tens of thousands remain in limbo.

Economic strategy, political divide

Defence firms are growing—and paying out. Rheinmetall will raise dividends by 42% this year. Hensoldt by 25%. Renk by 40%. The state invests. Shareholders benefit.

Still, not everyone supports Berlin’s military pivot.

In Görlitz, the far-right AfD scored 37% in recent elections—nearly half the town backed parties opposing arms for Ukraine.

“Do these tanks go to Ukraine?” asked Sebastian Wippel of the AfD.
“That would not be good.”

Even Saxony’s prime minister, Michael Kretschmer—long critical of weapons deliveries—supports the new jobs.

“This is an enormous opportunity for the city,” he said.
“The technology will serve to protect Europe.”

A future built on arms—perhaps not for long

KNDS has made no promises about how long tank production will last. And unions are asking the same question.

“Will tank manufacturing be a sustainable job?” said IG Metall’s Axel Drescher.
“Hopefully not. Hopefully, the wars will end.”

Carsten Liebig, standing in the shadow of the only workplace he’s ever known, had no illusions.

“The world moves on,” he said.
“All we can do is hope the jobs stay.”

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