In the rust-belt towns of former East Germany, where unemployment lingers and young people flee for brighter futures in the west, a surprising new industry is taking root: tank production. And even the most unlikely supporters—leaders from the far-right Alternative for Germany (AfD) party—are embracing it.
That’s because in places like Lauchhammer and Eisenhüttenstadt, jobs matter more than ideology. As Germany ramps up defense spending in response to Russia’s war in Ukraine, defense contracts are breathing life into long-depressed industrial zones—creating a paradox where anti-Ukraine politicians cheer for weapons factories that exist only because of that very war.
Why Tank Production Is Booming in Eastern Germany
Since Russia’s full-scale invasion of Ukraine in 2022, Germany has committed over €100 billion to military modernization—a historic shift for a country long averse to rearmament. Much of that spending is flowing to eastern states like Brandenburg and Saxony, where shuttered steel mills and vacant factories are being reborn as defense hubs.
Rheinmetall, Germany’s largest arms manufacturer, recently broke ground on a €1 billion tank and ammunition plant in Lauchhammer—a town of just 7,000 people that lost its main employer when a coal plant closed in 2020. The facility is expected to create 2,000 direct jobs and thousands more in logistics and subcontracting.
“This isn’t about war,” said Markus Richter, a local welder hired for the project. “It’s about feeding my kids.”
The AfD’s Contradiction: Anti-War, Pro-Jobs
The AfD has long opposed military aid to Ukraine, calling it “reckless” and “anti-German.” Party leaders have even echoed Kremlin talking points, blaming NATO expansion for the conflict.
Yet in eastern state parliaments, AfD lawmakers have unanimously supported Rheinmetall subsidies and fast-tracked zoning approvals for defense plants. In Brandenburg, AfD parliamentarian Steffen John recently praised the Lauchhammer factory as “a lifeline for our region.”
“They say one thing in Berlin and another in their districts,” said Dr. Lena Vogt, a political scientist at Humboldt University. “When your town is dying, even ideological purity has a price.”
Table: Defense Investment in Eastern Germany (2023–2025)
| Location | Project | Investment | Jobs Created |
|---|---|---|---|
| Lauchhammer, Brandenburg | Rheinmetall Leopard 2 tank & ammo plant | €1 billion | 2,000+ |
| Eisenhüttenstadt, Brandenburg | Steel supply for armored vehicles | €320 million | 800 |
| Dresden, Saxony | Drone and electronics assembly | €450 million | 1,200 |
| Leipzig, Saxony | Military logistics hub | €200 million | 600 |
A Community Reborn—At What Cost?
For many residents, the moral dilemma is real but secondary. “I don’t want war,” said Anja Müller, a mother of two now training as a CNC machine operator. “But I also don’t want my town to become a ghost.”
Local schools are adding vocational tracks in metalworking. Apprenticeship applications have tripled. Even environmental groups, once opposed to heavy industry, are cautiously supportive—provided green tech is integrated.
Still, critics warn of long-term risks. “Defense jobs are cyclical,” said economist Klaus Weber. “What happens when the war ends and orders dry up?”
The Bigger Picture: Germany’s Strategic Pivot
Berlin’s rearmament isn’t just economic—it’s geopolitical. With U.S. support wavering and Russia resurgent, Germany is positioning itself as Europe’s defense backbone. Eastern factories are central to that vision, offering skilled labor, space, and political urgency.
Ironically, the very regions once under Soviet control are now producing NATO-standard tanks to deter Moscow. History, it seems, has a dark sense of humor.
What Comes Next?
Rheinmetall plans to export tanks to Poland, Romania, and beyond—making eastern Germany a cornerstone of European defense industrial policy. Meanwhile, the AfD walks a tightrope: condemning Ukraine aid in national rallies while cutting ribbons at defense plants back home.
For now, in towns where hope has been scarce, the clang of metal on metal sounds like opportunity—even if it echoes from a tank.




