Ruag International has said it wants to divest its defence-related divisions to focus on the booming space market. The effect on jobs is not yet clear.
This content was published on
2 minutes
RTS/jc
“We are withdrawing from all defence-related businesses,” CEO André Wall said in an interview with the AWP news agency on Tuesday. This includes its ammunition factory in the Swiss town of Thun, military maintenance activities in Australia and Malaysia, as well as simulation and training activities in France, Sweden and Switzerland.
The Swiss-government-owned group currently has four divisions: Space, Aerostructures, MRO International and Ammotec, the last two of which it wants to sell off. In October last year, the group said it was losing nearly CHF3 million ($3.2 million) a month and that it would cut up to 150 jobs by the end of 2021. It is to be fully privatised in the medium term.
Part of MRO International’s activities at the Bavarian site in Oberpfaffenhofen have already been sold to General Atomics Europe. It also wants to divest itself of Ruag Ammotec, which specialises in ammunition, by the end of the year. However, the lower house of the Swiss parliament last week adopted a motion to halt the sale of this division, which employs more than 2,200 people, including 380 in Thun.
‘Beyond gravity’
The Bern-based group also wants to reorient Ruag Aerostructures, which has been affected by the coronavirus pandemic’s toll on the airline industry. “No one flies, no one orders aircraft parts,” said Wall. He also did not rule out selling off this division, which has 1,250 employees. “I do not exclude a divestment to a strategic partner,” he added.
Ruag International wants to focus on its Space division, which has 1,300 employees, and reposition it under a new brand, “Beyond Gravity”, in the medium term, according to Wall. It says this sector could be worth some CHF900 million by 2040, with annual growth rates of over 16%. “We want to develop integrated satellite and launch system capabilities with strong partners in Europe,” said the CEO.
More
More
Pacifist group slams Swiss investment in global arms industry
This content was published on
Why Switzerland should take the lead according to promoters of proposed investment curbs for weapons companies.
Uri voters clear path for hotel and marina complex in central Switzerland
This content was published on
Voters in canton Uri in central Switzerland have rejected a Green Party initiative aimed at regulating the development of the lakeside site in Isleten.
Valais voters reject plan to achieve carbon neutrality by 2040
This content was published on
Voters in canton Valais in southern Switzerland have turned down a proposal for the region to achieve carbon neutrality by 2040.
Swiss central banker wants to boost equity to head off risks
This content was published on
Equity levels at the Swiss National Bank (SNB) are much too low for the risks its large balance sheet poses, according to Martin Schlegel.
Beer sales in Switzerland watered down by bad weather
This content was published on
The past brewing year fell through in Switzerland, partly due to the bad weather. Beer sales shrank again. For the first time, per capita consumption fell below the 50 liter mark.
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.
Read more
More
Technology firm Ruag International to cut more jobs
This content was published on
The Swiss aerospace and armament company, Ruag, says it will shed up to 150 jobs by the end of next year due to the coronavirus crisis.
Swiss government wants to keep control of weapons exports
This content was published on
A people’s initiative collected enough signatures in 2019 to force a nationwide vote on the issue. It proposes enshrining rules for war materiel exports in the constitution, which would take this responsibility away from the government. On Friday the government issued a counterproposal that would give parliament the power to adjust the rules for selling…
This content was published on
How have arms found their way from neutral Switzerland, a country that likes to underline its humanitarian tradition, to conflict countries?
You can find an overview of ongoing debates with our journalists here . Please join us!
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.