VDL Nedcar in Born is set to partially transform its automotive manufacturing facility into a site for producing defense materials, following the recent approval of a motion aimed at bolstering the Dutch defense industry. This decision comes at the behest of BBB-Kamerlid Marieke Wijen-Nass, who has long advocated for strengthening the defense sector in the Netherlands, particularly in the Limburg region.
As part of this initiative, the Dutch government will lease production facilities from VDL and actively assist in establishing connections with European clients. This strategic move aims to reduce the country’s reliance on foreign suppliers and expedite the delivery of defense equipment. The facility, impressively sized at ten football fields and equipped with its own power plant, is seen as an ideal location for large-scale military production.
Wijen-Nass expressed her enthusiasm over the plan, stating, "This is good news for Limburg. We ensure a stronger Dutch defense while preserving jobs and enhancing the quality of life in this region. Limburg boasts a robust manufacturing industry and skilled workers, making it fantastic to leverage these opportunities now." This sentiment is echoed by VDL's management, which is confident in the factory's capabilities to adapt to new production requirements.
A significant driver for this transformation is the pressing demand for military supplies amid rising global tensions. Prior to this initiative, VDL Nedcar had faced uncertainty after BMW terminated its contract last year, leading to the layoff of approximately 3,500 employees. Since then, the company has sought new opportunities, and securing production assignments in the defense sector presents a timely and necessary pivot.
During a visit to the VDL facility, Minister of Defense, Kajsa Ollongren, announced that discussions are already underway regarding the potential for drone production at the site. “Many Dutch entrepreneurs are currently producing dozens or hundreds of drones each year. However, in these times, we need thousands,” Ollongren emphasized, pointing to the strategic necessity of increasing capacity.
VDL's CEO, Willem van der Leegte, believes that the Nedcar plant is exceptionally positioned to handle such production. “We have repeatedly been recognized as Europe’s best car factory, which speaks to our ability to produce quality across various sectors,” he asserted. This confidence signals a robust future for the factory, albeit with adjustments to the existing infrastructure needed for new defense-oriented production lines.
Ed Leunissen, a board member of the CNV union, raised practical considerations about the timeline for re-establishing the production line, suggesting that it could take at least a year to set up for the new operations. He remarked, “It’s not that simple. A new production line has to be built, and people need to be hired; many former workers have already moved on.” Nevertheless, he is optimistic about the factory’s return to operational status, recognizing it as a relief for the local community.
Leunissen voiced a cautious optimism regarding the nature of this new production focus, stating, “It’s unfortunate that we need to ramp up for the war industry’s needs, but if it’s necessary, why not here? We have a factory of ten football fields with an energy plant, and many former employees still looking for jobs.” His comments highlight the socioeconomic stakes entwined with the factory's future.
Concerns about the broader implications of defense manufacturing were also raised, as Leunissen cautioned against a hasty pivot towards military contracts, particularly if political tides were to shift internationally. “What happens if relations with the United States change again? Will we revert to sourcing defense materials from them instead of leveraging our capabilities here?” he pondered, illustrating the uncertainties that loom over long-term strategic planning.
VDL Group has a rich history, as a family-owned business founded in 1953 that spans over 100 affiliated companies engaged in producing a variety of goods, from automotive components to complete bus systems. Last year, the company reported earnings nearing 4.3 billion euros, with a net profit of 66 million euros. VDL also maintains a separate defense division that manufactures electric vehicles for Dutch military use.
As the groundwork lays for this conversion, the strategic partnership between the Ministry of Defense and VDL is poised to redefine how the Netherlands approaches its national defense production. An announcement from the Ministry hinted that operations could commence as early as fall 2025, although precise details around production specifications and financial involvement remain under wraps. The outcome of this initiative will hopefully herald a strengthening of both national defense capabilities and the local economy in Limburg.
While the military's need for rapid prototyping and advanced produce materials escalates, the cooperative framework established through this motion may very well position the Netherlands as a critical player in the European defense arena.
