March 24 (Reuters) - Volkswagen is in talks ​with Israel’s Rafael Advanced Defence Systems ‌over a deal that would shift production at the carmaker’s Osnabrueck plant from cars to missile ​defence, the Financial Times reported, citing ​people familiar with the plan. The companies aim ⁠to convert the German factory to ​make components for the Israeli state-owned group’s ​Iron Dome air defence system, the report said.

Volkswagen said it continued to explore solutions for the factory, ​adding that while it was in discussions ​with market participants it ruled out the productions of ‌weapons. Germany’s ⁠defence ministry declined to comment. Volkswagen wants to sell or reconfigure the site, which employs around 2,300 people, after the end of ​T-Roc Cabriolet ​production in ⁠2027 as part of a wider revamp. Talks with Rheinmetall (RHMG.DE), opens new tab about ​a sale stalled late last year, ​but ⁠Volkswagen CEO Oliver Blume said earlier this month that the company remained in talks with defence companies ⁠over ​a solution for Osnabrueck.