Government wants to privatise state-owned defence contractor
Over the past 20 years RUAG has developed from an armaments enterprise into an international technology group
Keystone
The Swiss Federal Council has decided that RUAG International, Switzerland’s state-owned arms manufacturer, should be developed into an aerospace technology group and fully privatised in the medium term.
The government has also approved unbundling procedures for the sections of RUAGExternal link that perform services for the armed forces, the defence ministry said in a statementExternal link on Monday.
“The Federal Council takes the view that this approach will best meet the armed forces’ needs and take account of the Confederation’s ownership interests and Switzerland’s position as a location for work and technology,” it said.
In the past 20 years RUAG has developed from an armaments enterprise into an international technology group. Nowadays, fulfilling its statutory role to provide equipment to the armed forces constitutes only part of its activities.
On January 1, 2020, RUAG will become a new holding company with two subsidiaries: MRO Switzerland, which will be responsible for providing services to the Swiss Armed Forces (2,500 employees, manufacturing sites in Switzerland), and RUAG International, which will perform for the other areas of business (6,500 employees, two-thirds of whom are based abroad).
These subsidiaries will be managed separately, be legally and financially independent, and will operate separate IT systems.
Focusing on aerospace
The Federal Council examined the further development options devised by RUAG and supported setting-up an aerospace group, according to the defence ministry. In the medium term, this would comprise the aerostructures and space divisions, it said.
“The focus lies on developing the expertise RUAG has built up in these business fields in recent years, and in retaining the technical knowhow in Switzerland. This also applies in relation to Switzerland’s space policy,” the defence ministry said.
RUAG has submitted several options for privatisation. The Federal Council will decide on what approach to take at a later point in time.
More
More
A Swiss government-owned weapons maker? This is RUAG
This content was published on
The Swiss defence contractor RUAG has come under fire for an alleged illegal deal to ship guns and arms to Russia.
Basel diocese files five claims of sexual abuse in Swiss Catholic Church
This content was published on
The diocese of Basel has received 141 reports of sexual abuse since the publication of a sweeping study on violations in the Catholic Church by the University of Zurich in 2023.
Swiss president calls for open markets and stable institutions in WEF speech
This content was published on
Swiss President Karin Keller-Sutter was among speakers at the WEF in Davos to make the case for fair competition, a day after Donald Trump became the 47th president of the United States.
Swiss film in competition at the 75th Berlinale has a shot at Golden Bear
This content was published on
The feature film La Cache by Lausanne screenwriter and director Lionel Baier has a chance of winning the Silver or Golden Bear at the 75th Berlinale, festival organisers said on Tuesday.
Swiss politician who shot at image of Jesus resigns from Liberal Green Party
This content was published on
Sanija Ameti, who caused controversy after shooting at an image of Jesus and Mary last September, has resigned from the Liberal Green Party.
Swiss campaigners gather enough signatures to submit ‘responsible business’ initiative
This content was published on
The Swiss people are set to vote again on the corporate responsibility of multinationals after campaigners collected 183,661 signatures in 14 days for their new 'responsible business' initiative.
Several Swiss municipalities and banks hit by cyberattack
This content was published on
Russian hackers attacked the websites of several Swiss municipalities and banks on Tuesday, just as the World Economic Forum (WEF), got under way in Davos.
Music strengthens brain connections in premature babies, Swiss study shows
This content was published on
In premature babies, music strengthens connections in certain areas of the brain, according to a years-long study by the University Hospitals of Geneva (HUG).
WEF gives Crystal Award to Beckham, Yamamoto and von Fürstenberg
This content was published on
The World Economic Forum in Davos handed out awards to UNICEF ambassador David Beckham, Japanese architect Riken Yamamoto and women's rights activist Diane von Fürstenberg.
Swiss CEOs betting on a strong domestic market in 2025
This content was published on
Swiss business leaders are optimistic about 2025, despite a world in crisis, says a new survey by Pricewaterhouse Coopers.
This content was published on
Economics Minister Guy Parmelin and Foreign Minister Ignazio Cassis have welcomed Chinese Vice Premier Ding Xuexiang to Bern
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
Ahead of an audit, RUAG denies ‘overbilling’ army
This content was published on
The audit will focus on the profits made under agreements concluded between RUAG and the Swiss army, Urs Breitmeier explained Saturday to public broadcaster SRF. In mid-December, the newspapers “Ostschweiz am Sonntag” and “Zentralschweiz am Sonntag” estimated that RUAG had overcharged the military by approximately CH40 million ($41 million) annually. The newspapers said that the profit margins for the…
This content was published on
Ruag remains among the top 100 arms manufacturers by sales according to the Stockholm International Peace Research Institute (SIPRI).
SIPRI’s annual figures, that were released on Monday, show that Ruag managed to clinch the 95th spot in 2017. It moved up by one place compared to the year before thanks to more arms sales: $870 million (CHF860 million) compared to $820 million the year before. Overall, the company registered sales of $1.98 billion, an increase of 5%.
American firms were responsible for the bulk of global arms sales (57%), followed by Russia (9.5%), UK (9%) and France (5.3%). China was not included in SIPRI’s statistics as reliable data could not be obtained.
RUAG weapons scandal suspects ‘had past business link’
This content was published on
A manager at the Swiss state-owned defence contractor RUAG has been suspended along with an employee of Swiss private bank Julius Baer as investigations continue. The Tages Anzeiger newspaper said it had unearthed evidence linking both to a previous venture. Both were high ranking executives of the now-defunct telecoms firm Novavox some 15 years ago,…
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.