German automotive manufacturer Renk, which produces tank transmissions and engines for the Israeli military, is considering moving production to the US after the German arms embargo on Israel.

Renk CEO Alexander Sagel mentioned the prospective shift on a post-earnings call, as reported by Reuters on Wednesday.

The call comes five days after German Chancellor Friedrich Merz announced the country would freeze military exports to Israel that could be used in the Gaza Strip, amidst an Israeli plan to occupy the entire Palestinian enclave.