The conversion from a military to a civilian company is almost complete. The two remaining divisions are also to be privatized by 2024. Then Ruag International is history.
André Wall pushed ahead with the conversion of Ruag. Now the last parts can be privatized.
After years of heavy losses, the prospects for the state-controlled Ruag International have brightened again. Under the leadership of André Wall, each of the four divisions managed to at least break even again in 2021.
The real gem of the group last year was again the ammunition company Ammotec, which made the main contribution to the company’s profits. As announced last week, Ammotec will be sold to the Italian family company Beretta – the parties have agreed not to disclose the price. With this separation, most of the transformation from the former “armament company AG” (Ruag) of the federal government to a company active in the civil sector has been completed.
Ruag Switzerland, which equips the Swiss army and maintains its weapon systems, had already been separated. It remains federal property.
In contrast, the activities to be privatized were bundled in Ruag International. After the sale of Ammotec, two remain: aerostructures and aerospace. In Oberpfaffenhofen, Germany, and in Eger, Hungary, parts for Airbuses are built, in Emmen smaller quantities for customers such as Pilatus, Boeing and Saab. In the meantime, the processes have been streamlined and they are prepared to ramp up capacity quickly if business at Airbus continues to pick up. The privatization of this area should be completed by 2023.
There is also progress in the space unit “Beyond Gravity”. It manufactures fairings for launch vehicles and parts for satellites. At the beginning of his engagement, Wall had explained that you wouldn’t stand a chance in this market if the organization didn’t become more agile. Private companies such as SpaceX, Virgin Galactic or Blue Orchard are giving the industry new impetus. The cost of satellite launches has already fallen sharply.
With sales of CHF 319 million and 1,600 employees – a third of whom are in Switzerland – Beyond Gravity is a small player. But the company was able to increase sales by 15 percent in 2021 and is also in the black again. Privatization is being prepared for 2024.
Wall wants to show the owner options here, and an IPO is also possible. This raises the question of whether part of the proceeds from the sale of Ammotec should be used to invest in Beyond Gravity. Ultimately, the federal government must decide. In any case, when he looked at the 2021 annual accounts, a load should have fallen from his heart. Now the last parts can be privatized. Ruag International should therefore soon be history.