Rheinmetall has reached an agreement in principle to acquire Alstom's locomotive factory in Kassel, the two companies have confirmed, with an Alstom spokesperson confirming the deal on October 6 while stressing that details remain to be finalised.

The site is the former Henschel works, where Alstom currently builds Traxx locomotives — one of Europe's most widely deployed freight and passenger electric locomotive families. Rheinmetall already has a manufacturing presence in Kassel, producing wheeled armoured vehicles in the same city.

For Alstom, the sale would shed a locomotive assembly site at a time when the company is working through a broad deleveraging programme; for Rheinmetall, it adds industrial capacity at a moment of expanding European defence procurement.

What has actually been agreed?

Very little is contractually settled. What exists is an agreement in principle on the takeover, confirmed by both companies. According to the Alstom spokesperson:

• Details still need to be finalised
• Staff at the site have been informed
• Negotiations with trade unions are underway
• No timetable has been agreed

The companies said they aim to give employees at the site sustainable long-term career prospects — a formulation that signals employment continuity is the central negotiating point, but which does not yet constitute a guarantee.

What did Rheinmetall say?

A Rheinmetall spokesperson told Railway Gazette International: "A basic agreement has been reached on the key pillars and the shared objective that Alstom employees at the Kassel site will be able to find employment with Rheinmetall Landsysteme at the Kassel site in future."

The spokesperson added that further details are still being negotiated and must be finalised in the contract, but "both sides are pleased to be able to offer colleagues good prospects for the future."

The reference to Rheinmetall Landsysteme indicates the defence group's land-systems division would take over the workforce rather than continue locomotive production — meaning Traxx manufacturing at Kassel would end if the deal completes as framed.

What is at stake for Alstom?

Alstom has not commented on what the sale means for the Traxx product line or where production would go. Any final agreement will have to address:

• The fate of Traxx orders currently in the Kassel backlog
• Any transfer of production to other Alstom sites
• Commitments to customers with Traxx fleets dependent on Kassel-built supply and support

Those questions remain unanswered in the announcement, and operators with Traxx fleets across Europe will be watching the final contract terms for clarity on production continuity.

What comes next?

Negotiations with trade unions continue, and a timetable for the takeover has yet to be agreed. A binding contract — covering employment terms, site transfer conditions and the detail both companies say is still under negotiation — is the next milestone, and no date for signing has been announced.