Acquisition Of Oerlikon Contraves AG Turns Rheinmetall Into A World-Class Supplier Of Medium-Calibre Weapons Systems And Ammunition
Rheinmetall DeTec AG the defence technology arm of the Rheinmetall group has taken up a 100% interest in Oerlikon Contraves AG of Zurich, Switzerland. A contract to this effect has now been signed in Zurich. The corporate buyout still requires the approval of the Federal Cartel Office. Oerlikon Contraves AG has up until now belonged to Oerlikon-Bührle-Holding AG. As part of a strategic reorientation, the Oerlikon-Bührle group is pulling out of the defence sector, and will henceforth focus on its core competencies: thin-film solutions and vacuum technologies. Rheinmetall's acquisition of Oerlikon Contraves AG and its integration in Rheinmetall DeTec AG, founded on July 1st 1999, is enabling vertical and horizontal optimisation of the company's value-added chain. By deepening and broadening its range of products, and strengthening its ability to offer complete system solutions, the move will improve Rheinmetall's competitiveness and access to world markets. Moreover, the merger of Rheinmetall DeTec AG with Oerlikon Contraves AG represents a significant advance in the necessary process of consolidation currently underway in the European armaments industry. Rheinmetall DeTec AG will continue in future to play an active role in rationalising Europe's defence technology sector. Today, this new defence technology holding company employs a staff of 8,500 and generates turnover of around DM 3 billion. It is a leading centre of excellence in the world of ground forces technology, and belongs to the elite of the European defence electronics industry. Rheinmetall DeTec AG has thus successfully laid the groundwork for expanding its strategic strengths and intensifying its existing competence as a supplier of defence systems. Oerlikon Contraves AG is a globally respected supplier of cannon systems and combined cannon and guided weapon systems used in an antiaircraft role. Systems made by Oerlikon Contraves AG are now in service in forty different countries. The company's approx. 2,100 employees produce a total turnover of SFr 500 million. It has subsidiaries in Germany, Italy, Canada, Singapore and Malaysia. The importance of being able to supply complex weapons systems is steadily gaining ground worldwide. Supplying such weapons systems calls for extensive knowledge in the fields of sensor technology, optronics, fire control systems and integration. Indispensable also are such services as training, simulation and logistical support for the overall system. Against this backdrop, the acquisition of Oerlikon Contraves AG systematically supplements the array of products offered by Rheinmetall DeTec AG. With this move, Rheinmetall AG's defence arm is expanding its competence in the medium-calibre sector, where it is emerging as a major system integrator. By combining the operations of Oerlikon Contraves AG with those of Rheinmetall DeTec AG's unit Mauser-Werke Oberndorf Waffensysteme GmbH, a world-class centre of excellence in the field of medium-calibre weapons and ammunition systems has come into being. Furthermore, in the field of fire control technology, in combination with STN ATLAS Elektronik GmbH (in which Rheinmetall DeTec holds a majority stake), the path to becoming a supplier of complete systems is now clear. In order to reinforce Swiss identity and continuity in the field of defence technology, a qualified minority share in the company will be offered to RUAG SUISSE by Rheinmetall DeTec AG. When Switzerland's armaments industry was privatised, RUAG SUISSE took over the country's formerly state-run defence technology activities. Its mission is thus linked with maintaining existing technological competencies on behalf of the Swiss Army. Qualified partnerships with Swiss and international companies are to be systematically strengthened. A constructive working relationship has long existed between RUAG SUISSE and the defence technology division of Rheinmetall AG in the field of medium-calibre ammunition. As RUAG SUISSE has held a 45% stake since 1998 in the Rheinmetall units Nitrochemie Wimmis AG and Nitrochemie Aschau GmbH, a legal and mutually beneficial link already exists between the two corporations. Building on this example of successful Swiss-German co-operation in ammunition production, in a financial alliance of RUAG SUISSE, Oerlikon Contraves AG and Rheinmetall DeTec AG, Rheinmetall intends to set new standards of excellence by exploiting synergies, particularly in the field of development. With the acquisition of Oerlikon Contraves AG, the Rheinmetall DeTec AG group of companies will generate sales of around DM 3.6 billion and employ a staff of 10,750, making it even on the European level a major and highly competitive factor in securing national and international defence technology core competencies, especially in the field of ground forces equipment.
Acquisition Of Oerlikon Contraves AG Turns Rheinmetall Into A World-Class Supplier Of Medium-Calibre Weapons Systems And Ammunition
