Bavaria’s defence boom creates jobs and security fears

Bavaria’s defence industry is expanding, with companies building or enlarging facilities across Upper Bavaria and the Munich region. The growth is creating jobs, but also raising concerns about security, housing and infrastructure, BR reports.

At a ceremony in Aschau am Inn, Rheinmetall chief Armin Papperger and political representatives laid the foundation stone for a factory that is expected to produce propellant powder for artillery ammunition in the coming years.

The project is part of a broader construction boom. KNDS is expanding its armoured vehicle plant in Munich, missile manufacturer MBDA is developing its site in Schrobenhausen and Rheinmetall is building in Aschau am Inn. New companies are also moving into the Munich region. Drone manufacturer Tytan Technologies is establishing a site in Aubing, Arx Robotics is planning a factory in northern Munich for its unmanned ground vehicles, and artificial intelligence company Helsing wants to build a production facility and research centre in Hallbergmoos.

These projects reflect what Bavaria’s economics ministry describes as the geographical focus of the state’s defence industry: Upper Bavaria.

Opposition has so far been most visible in Hallbergmoos, where opponents of the planned Helsing facility lost a referendum in early July. Critics nevertheless continue to voice concerns. At a peace demonstration in Munich in early September, Maria Feckl of the German Peace Society said she lived near the Erding air base, where the Bavarian government plans to establish a Defence Lab for start-ups and technological development.

Feckl said the project would worsen existing problems, including a shortage of affordable housing and congested roads. She also expressed concern about security. “These settlements do not make our home any safer,” she told BR.

Other demonstrators raised similar fears. “If Putin launches a retaliatory or pre-emptive strike, I am afraid that we will be presented on a plate,” said one demonstrator from Munich’s Schwabing district.

Critics also question whether the expansion can create a sustainable economy. Feckl argued that the defence industry would not deliver lasting economic, environmental or social benefits.

The defence industry and the Bavarian government take a different view. They describe the sector as an economic engine for years to come. Bavaria’s defence industry generated around 9.5 billion euros in revenue last year, supported by substantial special funds.

The projects are also expected to create thousands of jobs. The KNDS expansion in Munich-Allach would add around 1,000 positions. Helsing says it will create more than 300 jobs in Hallbergmoos, Tytan Technologies expects between 300 and 600 in Aubing, and Arx Robotics’ planned factory in northern Munich could employ up to 600 people.

Bavaria’s Economics Minister Hubert Aiwanger said the industry believed it had majority public support, while acknowledging that fears existed. He said efforts were needed to persuade people, arguing that the objective was to restore the Bundeswehr’s ability to defend the country.

The recent increase in so-called hybrid attacks has also caused concern.