Alstom reached a deal to sell its rail factory in the German town of Goerlitz to defense consortium KNDS, which plans to build battle tanks and infantry fighting vehicles. The transformation of the site should be completed in 2027, with production set to start that year, the two companies said Wednesday.

(Reuters) -French train maker Alstom has agreed to sell its Görlitz plant in Germany to defence equipment maker KNDS, the companies said on Wednesday. KNDS will start using the plant this year to produce assemblies for the Leopard 2 battle tank,

The Franco-German armaments group KNDS is taking over French rail vehicle manufacturer Alstom's factory in the eastern German city of Görlitz. Executives from both companies signed the deal on Wednesday while joined by German Chancellor Olaf Scholz at an event in Görlitz.

Alstom (EPA:ALSO), a leading player in the transportation sector, has finalized a deal to sell its rail manufacturing facility in Goerlitz, Germany, to defense consortium KNDS.