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“Space technology is a key technology”: The responsible National Council commission wants a halt to the sale of the Ruag company.
For five years, the Federal Council has been planning the gradual privatization of Ruag International and also the sale of the space company Beyond Gravity. Parliament had supported this plan several times. So far: With a vote of 17:1, the National Council’s Security Policy Commission is calling on the Federal Council to reconsider the sale.
The reason for the rethink is the changed geopolitical situation, says Commission President Priska Seiler Graf. “There was great agreement in the commission that space technology is a key technology.” Space is becoming increasingly important not only commercially but also in terms of security policy. Therefore, there is an overriding interest for the federal government to retain control and know-how here.
Legend:
Beyond Gravity specializes in the production of outer shells for rocket tips and satellites. The Swiss space company is part of Ruag International and currently still belongs to the federal government.
Keystone/Gaetan Bally
The Federal Council has assured that it only wants to sell the company to western buyers. But this assurance is no longer enough for security politicians. “There were concerns in the commission as to whether this would be possible,” says Seiler Graf. Because only a few European companies would be considered for a sale. “There were fears that there could be a sell-off of a strategically important technology.”
What if Beyond Gravity suddenly gets sold to Saudi Arabia, China or even Russia? That’s why the Security Policy Commission now wants a halt. And that’s just before the finish line: sales negotiations should have started in six months.
“Some problems” at the company
Green security politician Marionna Schlatter is one of the few who criticizes the Commission’s decision: “This decision comes very late. Privatization is already underway.” There are also some problems with the company and the federal government has to ask itself whether it wants to bear the risk.
Compliance problems, for example, as Schlatter explains: In the past, Ruag has been reprimanded several times for poor leadership and rule breaking. If the federal government keeps the subsidiary, it also retains management responsibility. Then there is the financial risk. Today, little is known about how expensive it would be for the federal government to keep Beyond Gravity and how much investment would be required.
Commission President Priska Seiler Graf also admits this: “We haven’t seen the exact price tag yet. We have now simply made a declaration of intent.”
Legend:
Beyond Gravity is based in Zurich.
Keystone/Christian Merz
As of this week, the future of the company is a little more up in the air. One thing is clear: With the Commission’s decision, the space business is being politically reassessed and given strategic weight. But it is also clear: If the sale of Beyond Gravity is actually stopped, a lengthy political process will follow, including a change in the law. Because space would have to be defined as an area of overarching national interest.
According to the federal government, Beyond Gravity’s further commercial development would be blocked for three to five years. What is then left of the company is “beyond knowledge” – it goes beyond current knowledge.
For SVP man Mauro Tuena, the commission’s decision is also related to the recently sold ammunition company Ammotec. “Ammotec was also separated from Ruag and sold. The consequence is that we no longer produce ammunition.” They don’t want to repeat this mistake with Beyond Gravity.
But the question is: Can the ammunition market be compared to the space industry? When asked, the Federal Finance Administration, which is responsible for the business, wrote: The space business is very dynamic and internationally interconnected. And: Remaining in federal ownership would hamper the company’s development opportunities.
Beyond Gravity itself cannot comment on this, says spokesman Philipp Bircher. “But we will do everything that is in the best interest of the future of the company and the employees of Beyond Gravity.”