German arms maker shifts production to US to sidestep Israel embargo

Renk, which makes tank gearboxes, said the move is designed to bypass new German restrictions. Chief executive Alexander Sagel told the Financial Times that both the company and Germany remain committed to ensuring Israel retains military superiority and deterrence capabilities, which “are not only needed in Gaza but also at other borders.”

“It is also clear that we are discussing a plan B. The plan B is that we relocate production of these specific transmissions to the U.S.,” Sagel said. He added that Israel accounts for roughly 2–3% of the company’s portfolio.