Steyr Arms, the world-famous manufacturer of the StG 77 Bundeswehr assault rifle, based in Kleinraming (Upper Austria), is suddenly experiencing major problems with the export of its weapons. The company’s headquarters in Austria is shaking.
After KTM’s dramatic bankruptcy at the end of November, the next bad news threatens the local economy: Steyr Arms, a traditional company since 1864, is threatening to withdraw from Austria after 160 years. And this despite the fact that order books are full, production is in full swing and product requests are coming in from all over the world.
But thousands of completed assault and sniper rifles are currently oiled and packed in the warehouses in Kleinraming. And they cannot leave due to a lack of permission from the Ministry of Foreign Affairs:
- Oman, for example, has ordered sniper rifles. Steyr Arms has had a business relationship with the country for fifteen years and has already equipped the military with assault rifles. The ordered goods are ready in the halls, but cannot be delivered because, according to information from “Krone”, the export request “lingers” for months.
- Iraqi police have ordered assault rifles and pistols from Steyr. The Austrian Ministry of the Interior is supporting the Iraqis with training, and the UN has given its support. However, the Austrian Ministry of Foreign Affairs does not issue export permits.
- It even clashes with countries such as Malta, Serbia, Montenegro and Turkey. The authorities in Egypt – a popular holiday destination for Austrians – had wanted to buy pistols from Austria, Steyr was not allowed to deliver and the Italians came instead.
“Then just from another location”
“Our customers are now telling us directly: either you will deliver soon, or we will buy in other EU countries or in Great Britain or the US,” a Steyr Arms spokesperson told Kronen Zeitung. The company’s owners raise the question of location and the weapons manufacturer openly puts pressure on the government: “We see great market opportunities and are equipping the company accordingly. If this is not possible in Austria, then from another location.”
Careful investigation of all individual cases
The Ministry of Foreign Affairs (BMEIA) reacts calmly to the allegations: “In the interests of Austrian companies, we always process all business cases as quickly as possible,” the ministry said in response to a question from “Krone”. However, each individual case is examined for the security situation, compliance with human rights, the risk of abuse and compliance with obligations under international law. Our neutrality would make things even more difficult.
Steyr still feels intimidated by the authorities. And there would be good conditions for a complete withdrawal from Austria: Steyr Arms was bought by a Czech investor in April this year. This one owns another security company in Slovenia. “An EU country that does not cause our sister company any serious problems with export permits.”
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
