Sig Sauer gives up in Germany
Sig Sauer closes its German location. However, the pandemic is not the only cause of the bankruptcy. The arms manufacturer cannot win large orders beforehand. He sees his international orientation as the reason.
The arms manufacturer Sig Sauer wants to close its German production site in Eckernförde in Schleswig-Holstein at the end of the year. This was announced by the management. The local location disadvantages did not allow economic production of sports and government weapons in the future, the company said. The works council and the workforce had already been informed of the economic situation. Accordingly, about 125 employees lose their jobs.
The company pointed out that German legislation is increasingly restricting the use of sporting weapons. “When it comes to awarding government contracts, a few local producers are preferred by both the German police and the Bundeswehr.” Sig Sauer was systematically excluded from the tenders because of the company’s international orientation. Most of the company’s developments came from the United States. Managing director Tim Castagne told the “Bild” newspaper that Sig Sauer was unable to prevail against the competition on large orders, for example with the new assault rifle from the Bundeswehr.
The current effects of the Corona crisis
According to the company, the shareholders have made major financial contributions to stabilize the company in recent years. There were also drastic austerity measures to secure jobs in Germany. “In addition to the existing problems, there are the current effects of the Corona crisis; which have an additional economic impact on continuing business in Eckernförde.”
Since 2000, Sig Sauer GmbH & Co.KG in Eckernförde has belonged to L&O Holding in Emsdetten (North Rhine-Westphalia), which also includes the US sister Sig Sauer Inc. in Newington (US state of New Hampshire) and the Swiss Swiss Arms in Neuhausen belong.