CEO of German defense firm Renk says the company may relocate production for Israeli contracts to the US following Chancellor Merz's suspension of arms deliveries to Israel.

German defense company Renk Group AG said it might relocate production designated for Israel to a US plant, responding to Chancellor Friedrich Merz’s decision to halt certain arms deliveries to the country.

German Chancellor Friedrich Merz on Sunday defended his decision to halt certain arms exports to Israel amid growing dissent even in the ranks of his own party. "The principles of German policy on Israel remain unchanged,

German Chancellor Friedrich Merz on Sunday defended halting some weapons deliveries to Israel amid mounting criticism of the move from some within his own ranks.

Germany’s halt of certain weapons exports to Israel has drawn condemnation from Jewish groups and members of Chancellor Merz’s own coalition.

Prime Minister Benjamin Netanyahu says German Chancellor Friedrich Merz has “buckled under” pressure from foreign and domestic groups opposing Israel, after the chancellor imposed a partial arms embargo in response to Israel’s plans to expand the war in Gaza, and vows that Israel will fight Hamas “with or without the support of others.”

German Chancellor Friedrich Merz said that despite the decision, Berlin's approach toward Israel has not changed. Israeli Prime Minister Benjamin Netanyahu said he hopes Merz will reconsider.

Alexander Sagel, Renk’s chief executive, told the Financial Times the company is assessing the impact of the embargo but remains committed to ensuring Israel can maintain its military deterrence “not only in Gaza but also at other borders.