RUAG International withdraws from defence with Ammotec sale
As part of the agreement, the Swiss Federal Council sought a guarantee from Beretta for the Ammotec facility in Thun. (Photo: RUAG International)
RUAG International has concluded an agreement on the sale of its Ammotec business unit to Beretta Holding.
As envisaged by the Swiss Federal Council in its divestment strategy, RUAG International has concluded the agreement to divest its Ammotec business to Beretta for an undisclosed sum.
The announcement of potential sale had been announced in the Swiss Parliament in Autumn 2021.
For RUAG International, this sales agreement confirms its strategy of evolving from a state-owned defence enterprise into a technology provider with a focus on space.
André Wall, CEO of RUAG International, commented on the significance of this sale: ‘We are taking the next step to withdraw from the defence-related business completely’.
RUAG Ammotec is a leading European supplier of small-calibre ammunition
The decision to withdraw from the defence sector was made during the COVID-19 pandemic amid a tough economic environment.
In October 2020, RUAG International claimed it was losing nearly CHF3 million ($3.2 million) a month.
In response, the company announced in March 2021 that it had transferred all shares in its RUAG Aerospace Services subsidiary to General Atomics Europe.
In November of the same year, RUAG announced it was in the negotiation process to sell its simulation and training business to Thales.
More from Defence Notes
-
![What the future holds for Ukraine and NATO under a Trump administration]()
What the future holds for Ukraine and NATO under a Trump administration
Although Trump’s geopolitics policy for Europe remains unclear, defence analysts from the US and Europe predict how his incoming administration would attempt to handle critical issues on the continent.
-
![RUSI deputy: UK needs longer procurement plans and improved awareness of US sift to Indo-Pacific]()
RUSI deputy: UK needs longer procurement plans and improved awareness of US sift to Indo-Pacific
The UK budget announced in Parliament on 30 October was the first by a Labour government in 14 years which has also launched a review into defence procurement programmes.
-
![Australia outlines longer punch and brings local industry onboard]()
Australia outlines longer punch and brings local industry onboard
The Australian government has placed a focus on Guided Weapons and Explosive Ordnance (GWEO) which has included the purchase of additional long-range rocket systems and investments in local production of missiles.
-
![UK boosts defence budget by 5.3%, but is this enough?]()
UK boosts defence budget by 5.3%, but is this enough?
The UK budget announced in Parliament on 30 October is the first by a Labour government in 14 years. While it sees a boost in defence spending, this comes in the face of fiscal challenges and the effects of inflation.
-
![UK makes big moves to fix “broken” defence procurement system ahead of major review]()
UK makes big moves to fix “broken” defence procurement system ahead of major review
The changes are intended to meet greater need and deliver more value for money.
-
![US companies invest in production capabilities to satisfy DoD’s hunger for cutting-edge capabilities]()
US companies invest in production capabilities to satisfy DoD’s hunger for cutting-edge capabilities
BAE Systems, Booz Allen Hamilton and Lockheed Martin have been betting on new facilities and innovative manufacturing technologies to speed up the development of new solutions.
