Steyr Arms loses 9.5 million order: Bureaucracy puts an end!
Steyr Arms loses 9.5 million order: Bureaucracy puts an end!
The Austrian arms manufacturer Steyr Arms faces a bitter setback in international business. The reason? A bureaucratic hurdle that prevents the company from fulfilling a multi -million dollar order from Tunisia. According to , the Tunisian authorities, which have been a main customer for 47 years, have started an international tender on the occasion of the retrofitting of 8,000 storm rifles. This separation came as a surprise to Steyr Arms because the company even had to provide free patterns and a training weapon for the delivery of its rifles.
The story goes back to 1978, when Steyr Arms, still known as Steyr Mannlicher, delivered the first large order over assault rifles of the “StG77” to the Tunisian police. Tunisia is not only a long-term customer, but also a strategically important partner for the company that has now developed into an international group of companies and is selling high-quality outdoor products worldwide.
bureaucratic hurdles and deadlines
On December 20, 2024, Steyr Arms submitted the application for export permit to the Austrian Ministry of the Interior. However, this approval, which also requires the approval of the Ministry of Foreign and Defense, must be granted within strict deadlines. The deadlines, even for submitting the documents, have already been extended twice - until April 16 and until May 6, 2025. In the end, however, the company received no approval.
The consequences are enormous: Steyr Arms was disqualified from the competition for the order, while competitors from the USA and the EU were able to deliver their test weapons on time. The loss of the order results in a volume of around 9.5 million euros; The additional long -term proceeds from spare parts, which are estimated at 20 to 25 million euros, are also lost. This not only means a setback in sales, but also led to the termination of 30 employees, so that the company now only employs 140 workers.
The background of the export permit
The regulations for approval of arms exports in Austria are strict. According to BMWK , the Foreign Industry Act (AWG) sets requirements that must go through all armor applications. The political basis is based on taking human rights into account and the regional situation in the recipient country. These strict requirements could be a reason why the Interior and Foreign Ministry did not provide any information about the special case on request.
The Foreign Ministry emphasizes that every armor mandate is subjected to a precise individual case examination to ensure that the interests of the international community, human rights and stability remain in the recipient country.
for Steyr Arms, the loss of the order and the associated negative result of ten million euros in 2023 - given liabilities of almost 27 million euros - could become a serious challenge. The company, which was taken over by RSBC Industries from the Czech Republic in 2022 and is known for its high -quality products, is now faced with the urgent need to find new perspectives and to get the business on course.
The armor industry must not only develop products, but also master the bureaucratic hurdles in international business. In the future, it could be important for Steyr Arms to find a better connection to political decision -makers, especially since even skillful inquiries to high -ranking politicians did not produce any significant response.
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| Ort | Steyr, Österreich |
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