Former Dutch car plant repositions itself as defense firm — newspaper

Business & Economy October 07, 18:06

According to the publication, three military companies have signed contracts with the plant

THE HAGUE, October 7. /TASS/. The former VDL Nedcar auto plant in the Dutch municipality of Born (province of Limburg) is going into the defense business, Het Financieele Dagblad newspaper reported.

According to the publication, three military companies have signed contracts with the plant: Dutch drone manufacturer DeltaQuad and UAV battery manufacturer Tulip Tech, as well as Estonian Milrem Robotics, which produces unmanned combat vehicles.

Tulip Tech has already begun production in Born. The company's battery modules reportedly increase drone flight life by more than 30%. The startup plans to increase production from over 100,000 batteries this year to 1.5 million units per year over the next 18 months.

Milrem Robotics, which employs approximately 430 people in 16 countries, expects to begin production in Born early next year and increase output to approximately 150 combat vehicles per year.

DeltaQuad also intends to expand production: the company currently produces several dozen reconnaissance drones per month, but plans to expand to hundreds, and if demand is high, thousands.

The agreements between the plant and the defense companies are for ten years.

In the near future the plant is going to sign more contracts with defense sector companies.

In particular, the German concern Rheinmetall and the Swiss-Dutch company Destinus are negotiating deals with VDL on the production of armored vehicles and drones in Born.

Acting Dutch Defense Minister Ruben Brekelmans also named the plant as a potential site for the production of high-tech ammunition.

The total area of the plant is approximately 450,000 square meters. Just under a quarter of this space has already been leased by the Dutch Ministry of Defense.

After the last Mini car, commissioned by BMW, ceased production at the plant last February, VDL spent a long time searching for new customers, but in the end failed to enter into business with new foreign automakers.

In the spring of 2025, the EU took steps toward large-scale militarization.

In March, at an emergency summit in Brussels, the ambitious 800 bln euros ReArm EU rearmament plan was approved, providing for joint arms procurement and the use of funds from the program for depressed regions. The EU Council later approved the creation of a 150 billion euros militarization fund (SAFE) as part of a long-term military development program until 2030. At the June NATO summit in The Hague, a decision was made to increase European states' military spending to 5% of GDP by 2035.

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