The Dutch Ministry of Defence has entered into a rental agreement with VDL Groep in Born. As a result, Defence will have production space available immediately.
Defence and VDL already announced in March their intention to join forces to increase military production in the Netherlands. The signing of the lease agreement is an important step towards this. The agreement was signed by Defence Minister Ruben Brekelmans and VDL CEO Willem van der Leegte.
More investments in defence
The agreement between Defence and VDL is part of a broader focus on scaling up the Dutch defence industry. For example, at the recent NATO summit in The Hague, NATO members agreed to spend 5% of GDP on defence spending. 3.5% of that is direct investment in defence. The remaining 1.5% is aimed at 'wider investments'.
27,500 square metres of production space will become available with immediate effect. However, this is only a small part of the total production space defence will have at its disposal in Born; before the end of the year, it will be around 120,000 square metres.
Wide range of projects
Defence plans to use the Born location for a wide range of projects. These include the production of military drones and both the maintenance and modernisation of defence vehicles. Defence wants Dutch companies to use the production halls. The lease agreement thus also contributes to the Dutch economy and technological innovation strength.
The collaboration between Defence and VDL is seen as a win-win situation. "Today we are taking an important step to strengthen our defence industry," said Minister Brekelmans. "I am delighted that Defence and VDL are making the cooperation increasingly concrete. VDL has the experience and resources to set up production lines. In this way, we not only protect the safety of the Netherlands and our allies, but also strengthen our economy and create more jobs."
Financial headwind
In March, VDL Groep still reported that 2024 was financially weaker than the previous year. Among other things, it pointed to the downsizing at VDL Nedcar, headwinds due to material shortages and consequently delayed deliveries of buses, stagnating market developments and higher costs. VDL Groep spoke of a weak first six months, but saw recovery in the second half of the year. The lease agreement the company now concludes with Defence is therefore a boost for the company.
VDL Groep is an international industrial company. The company is headquartered in Eindhoven. VDL Groep is active in various sectors, including the automotive industry, high-tech systems, and product assembly. The company was founded in 1953. VDL Groep consists of several independent companies, each focusing on a different market segment. These include VDL Bus & Coach, VDL ETG and VDL Nedcar.
