German defense contractor Renk considers continuing Israel exports, bypassing embargo
Renk CEO, Alexander Sagel, told the Financial Times that the company has a “responsibility” to ensure that Israel can “maintain its deterrence capabilities.”
German defense contractor Renk Group, which manufactures gearboxes for Israeli tanks and armored vehicles, has announced that it is working on a way to bypass Germany’s decision to halt arms sales to Israel, the company’s CEO, Alexander Sagel, told The Financial Times in an interview.
Sagel explained that it had a “responsibility” to ensure that Israel can “maintain its deterrence capabilities.”
According to Sagel, the company was still trying to understand the consequences of Chancellor Friedrich Merz’s announcement last week that he would suspend the sale of military products that could be used in Gaza.
Sagel also told FT that “as a German company, Renk would comply with the country’s laws and regulations,” but he also made clear that they were exploring different options to continue their sales to Israel.
“It is also clear that we are discussing a plan B. Plan B is that we relocate production of these specific transmissions to the US,” said Sagel, who earlier told analysts that Israel accounted for 2 to 3 per cent of Renk’s sales.
Sagel also emphasized the “morality” of Renk’s decision to keep selling parts to Israel, arguing that the humanitarian situation in Gaza.
“It was a difficult discussion,” Segel said, and added, “Of course, we see all the discussions about the Gaza Strip. But from the German point of view, we have a responsibility to ensure that Israel is able to maintain its deterrence capabilities. These are not only needed in Gaza but also at other borders.”
Another incentive seems to be centered around its impact on the company’s performance, with Segel stating that if the embargo went ahead, it was likely to hit Renk’s operating profit by an amount in the mid single-digit millions of euros in the second half of the year.
The report also noted how Renk’s decision was not the norm in Germany, with giant Rheinmetall, whose products include tank ammunition, stating that they were not exporting any weapons to Israel.
