German military technology manufacturer invests in Oberkochen while other sectors close factories. The new 40,000-square-meter complex will combine development, production, and service of optical systems.
German military technology manufacturer Hensoldt has launched a new production plant in Oberkochen, Baden-Württemberg, aiming to create around 900 new jobs and increase the total number of employees at the location from the current 1,000 to around 1,900, Poslovni dnevnik reports. The total investment amounts to approximately €300 million, of which €100 million was invested in the construction of the plant itself over three years, and an additional €200 million in production equipment and technology.
The official opening of the new plant was attended by German Minister of Defense Boris Pistorius, who, according to Poslovni dnevnik, highlighted that
"this is an important investment in German industry and security". Company CEO Oliver Dörre emphasized that this plant will become the center for the development and production of advanced optical systems for the defense industry. Hensoldt announced the expansion of the Oberkochen plant back in 2023, and in addition to this location, it plans new hiring in the nearby city of Aalen.
The new complex covers approximately 40,000 square meters and combines development, production, and service of products from the Hensoldt Optronics division in one location. The plant will manufacture high-tech optical systems intended for the German armed forces, including digital observation systems, targeting devices for Leopard tanks and Puma infantry fighting vehicles, and periscopes for submarines. This equipment is at the center of European defense programs, especially since 2022 when Germany launched a massive reindustrialization of the military sector.
Hensoldt, headquartered in Taufkirchen near Munich, was founded in 2017 and today employs over 9,300 workers. In 2025, the company achieved a turnover of around €2.46 billion. The opening of the new plant is particularly notable at a time when numerous companies in Germany are closing factories and cutting jobs in the automotive, chemical, and manufacturing sectors, while the defense industry records the opposite trend of continuous growth and investment.
Hensoldt's investment is part of a wider trend of increasing defense spending in the European Union, which has been ongoing since Russia's invasion of Ukraine in 2022. Many EU member states, including Germany, have increased their defense budgets in line with NATO guidelines, directly boosting demand for equipment from domestic manufacturers like Hensoldt. This trend also has macroeconomic implications for the EU: the defense sector is becoming one of the few that records strong employment and investment growth at a time when industrial production in parts of the eurozone is under pressure.
Hensoldt plans new hiring at the Aalen location as well, and the long-term goal for Oberkochen remains reaching around 1,900 employees. Specific deadlines for achieving this goal have not been announced in available sources. The company's growth follows the broader dynamics of the European defense equipment market, which, according to expert analyses, is experiencing record demand, also driven by accelerated modernization programs of armies across the EU.
