Renk to shift Israel-bound production if German embargo takes effect

Published 13/08/2025, 11:38
© Reuters.

Investing.com -- Renk, a tank gearbox manufacturer, plans to relocate production of items sold to Israel if Germany implements an export embargo on weapons to the country, CEO Alexander Sagel announced during a post-earnings call.

"If we cannot produce them (hundreds of transmissions) in Germany, we will relocate these volumes to a different plant, for example to the U.S. This might take maybe 8 to 10 months, but, if there’s no move forward, we will do it because we have this business," Sagel stated.

The potential shift comes after German Chancellor Friedrich Merz announced last Friday that Germany would suspend exports of weaponry that could be used in the Gaza Strip due to Israel’s planned expansion of operations in the region.

According to Sagel, Israel accounts for between 2% and 3% of Renk’s overall business portfolio.

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