[ad_1]
“We are exiting all business areas related to weapons,” Ruag’s new boss André Wall said in an interview with the AWP news agency. These are the munitions factory in Thun, the military maintenance business in Malaysia and Australia, as well as the simulator and training business with locations in Switzerland, France and Sweden.
A complete sale to strategic partners for the construction of aircraft structures is not ruled out either. During the pandemic, the division suffered the biggest drop of all Ruag divisions: “No one flies anymore, no one asks for aircraft parts,” said Wall, who has been in office since the beginning of the year. The division manufactures fuselage and wing parts for Airbus, among others.
The division had to undergo a complete overhaul, the company chief said: “It should be at least until 2025 before aircraft manufacturers reach pre-pandemic volumes again. Despite the particular challenges in the aviation industry, I am optimistic that we will be able to use the restructuring to position Aerostructures strongly for the future. “
“You want to become a speedboat”
It’s important that the new owners take care of the employees, Wall said. That managed to sell parts of the business in Oberpfaffenhofen, Bavaria. Ruag recently sold the aircraft service area there to General Atomics Europe. The area includes the manufacturing of the Dornier 228 propeller aircraft and its customer service, as well as the maintenance of business jets and military helicopters. General Atomic will take care of the 420 employees in the area.
With this, the new boss is making big bets after 100 days in office. The Ruag International tanker should be converted to speedboats, the German said.
Most of the workforce will receive new employers. The munitions division has 2,500 employees, aircraft structure construction 1,250 employees, and the international military business (MRO) 630 employees.
1300 employees remain
What remains is the space division with 1,300 employees, of which, however, 100 jobs will be cut by the end of the year. Here Ruag International wants to get started in the satellite business. Wall announced that the company wanted to transform itself from a manufacturer of individual components for satellites into an integrated provider of subsystems for satellites. The focus is on expanding market leadership in Europe and expanding market access, especially in the US, but also in Asia.
There is also a new research and development team that should design new satellite parts. The company wants to shift production from current prototypes to larger quantity miniseries. “We have an optimal starting window ahead of us: the space market is booming,” Wall explained in the statement. Analysts at US bank Morgan Stanley predict a $ 1 trillion market by 2040 with annual growth rates of more than 16 percent.
The spatial division remains
The satellite business should be renamed “Beyond Gravity” (German: Beyond Gravity). The Ruag International brand has caused confusion among customers, Wall said.
This means that the Ruag Group is shrinking enormously after surpassing the CHF 2 billion sales mark for the first time in 2019. However, this also included the Swiss army business, which has now been separated.
Only the space division remains, which had a turnover of 339 million francs in 2019. More recent figures are not yet available. Ruag plans to publish the business results for the 2020 crown year on March 25.
The munitions division’s sale process began in December, Wall said: There are quite a few stakeholders from different areas, such as strategic industrial companies or financial companies. The sale should be completed this year.
An IPO of the space business, as was brought into play with the announcement of the business spin-off for the Swiss military, “has no priority,” Wall said. “It is important that we focus on the market and the customers.” Privatization of the remaining space business is possible in two to three years. An initial public offering is one possible way.
First, however, the group has to get out of the red. In the first half of the year, Ruag International had increased its net loss to CHF 48 million after CHF 19 million in the previous year. Sales were down about 11 percent to 570 million francs. (pbe / SDA)
Combat operation in Yemen: Saudi officers practiced on Ruag’s Swiss simulators(01:40)
Posted: Mar 9, 2021, 2:46 pm
Last Updated: March 9, 2021, 3:42 pm
