Government wants to privatise state-owned defence contractor
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.
Protein in abdominal fat could help shape obesity treatment
This content was published on
The study analysed fat cells from different locations in the body, and found that those in the abdomen have unique properties.
North African asylum claims fall after rapid Swiss processing
This content was published on
The accelerated procedure, now out of its test phase, has resulted in a significant drop in applications from North African countries.
This content was published on
The artist's song "The Code" focuses on their journey as a nonbinary individual. It is one of the favourites to win this year's contest.
Swiss climate activists block vehicles near Gotthard tunnel
This content was published on
Around ten climate activists briefly blocked the A2 motorway near the northern entrance of the Gotthard tunnel on Thursday.
Watches belonging to Michael Schumacher up for auction
This content was published on
Schumacher's family is auctioning off eight rare watches from his collection in Geneva. The Christie's auction will take place on Monday.
Joya Marleen and Baschi named best solo acts at Swiss Music Awards
This content was published on
St. Gallen singer Joya Marleen and Baschi from Basel were named artists of the year at the Swiss Music Awards 2024 on Wednesday night.
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.