Oerlikon Contraves Defence sold for undisclosed amount

Oerlikon-Bührle Holding AG announced Tuesday it was selling its defence division Oerlikon Contraves Defence for an undisclosed amount to German-based Rheinmetall DeTec AG.

Oerlikon-Bührle Holding AG announced Tuesday it was selling its defence division Oerlikon Contraves Defence for an undisclosed amount to German-based Rheinmetall DeTec AG.

A spokesman for Oerlikon-Bührle said that the division simply “lacked the critical size” to compete successfully in the international weapons market.

Oerlikon Contraves Defence is best known for its air defence systems — such as Adats, Skyguard or Skyshield — and vehicle-mounted cannons ranging from 20mm to 35 mm calibre.

Rheinmetall DeTech, which has Defence, Engineering, Automotive and Electronics divisions, will buy the Defence division with all its production facilities in Switzerland, Italy, Germany, Canada, Singapur and Malaysia.

DeTech is to buy 100 percent of Oerlikon Contraves Defence’s share package.

About 1,300 employees of the defence division’s overall 2,100 workers are based in Switzerland. And the current head of the division, Ernst Odermatt, is to retain his management post.

Analysts say the latest move is in line with Oerlikon-Bührle’s strategy to redefine itself as key force in the high-tech product market, such as space technology.

The arms division once used to be the company’s core business. But its sale is not all that surprising since Oerlikon-Bührle already sold its Bally shoe production line to the United States-based Texas Pacific Group a few weeks ago. The Swiss company’s real estate section was sold off in July and experts say that Pilatus aircraft will be sold by the end of the year.


From staff and wire report.