Armed forces supplier

Steyr Arms threatens to withdraw from Austria

(Bild: MILPICTURES / Tom Weber)

Steyr Arms, the world-famous manufacturer of the StG 77 army assault rifle based in Kleinraming (Upper Austria), is suddenly having major problems exporting its weapons. The company's headquarters in Austria is shaky.  

After the dramatic KTM insolvency at the end of November, the next piece of bad news for the domestic economy is looming: Steyr Arms, a traditional company since 1864, is considering pulling out of Austria after 160 years. And this despite the fact that the order books are full, production is running at full speed and product inquiries are coming in from all over the world.

The Steyr Arms site in Kleinraming with around 160 employees(Bild: Steyr Arms)

However, thousands of finished assault and sniper rifles are currently lying oiled and packed in the warehouses in Kleinraming. And they cannot leave due to a lack of permits from the Foreign Ministry:

• Oman, for example, has ordered sniper rifles. Steyr Arms has a 15-year business relationship with the country and is already equipping the army with assault rifles. The ordered goods are ready in the warehouses, but cannot be delivered because the export application has been "left lying around" for months, according to information from "Krone".

• The 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 sanction. However, the Austrian Foreign Ministry does not issue export licenses.

• There is even a dispute with countries such as Malta, Serbia, Montenegro and Turkey. The authorities in Egypt - a popular vacation destination for Austrians - would have liked to buy pistols from Austria, but Steyr was not allowed to deliver, so the Italians got their turn instead.

Every conscript and police officer in Austria is familiar with the Steyr StG 77, also known as the AUG in the A3 SF version(Bild: Aigner Friedrich)

"From a different location then"
"Our customers are now telling us directly: either you deliver soon, or we will buy from other EU countries or in the UK or the USA," a spokesperson for Steyr Arms told the Kronen Zeitung newspaper. The owners of the company are questioning the location, and the weapons manufacturer is openly putting 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."

Close examination of all individual cases
The Foreign Ministry (BMEIA) reacted calmly to the accusations: "In the interests of Austrian companies, we naturally always process all business cases as quickly as possible," said the ministry in response to a Krone inquiry. However, each individual case is checked for the security situation, compliance with human rights, the risk of detour and compliance with obligations under international law. Our neutrality would be an additional complication.

Sniper rifles from the Kleinraming-based company are also often requested and are in use in numerous units from Russia to America.(Bild: Steyr Arms)

Steyr nevertheless senses harassment by the authorities. And would have good prerequisites for a complete withdrawal from Austria: Steyr Arms was bought by a Czech investor in April of this year. This investor owns another security company in Slovenia. "An EU country that doesn't cause our sister company there any serious problems with export licenses."