Identifier
Created
Classification
Origin
05VIENNA3679
2005-11-18 15:43:00
UNCLASSIFIED
Embassy Vienna
Cable title:  

STEYR-MANNLICHER PLANS TO PHASE OUT ASSAULT

Tags:  ETRD ETTC EIND ECON AU 
pdf how-to read a cable
This record is a partial extract of the original cable. The full text of the original cable is not available.
UNCLAS VIENNA 003679 

SIPDIS

E.O. 12958: N/A

TAGS: ETRD ETTC EIND ECON AU
SUBJECT: STEYR-MANNLICHER PLANS TO PHASE OUT ASSAULT

WEAPON PRODUCTION IN AUSTRIA AND SELL TECHONOLOGY


Summary

-------

UNCLAS VIENNA 003679

SIPDIS

E.O. 12958: N/A

TAGS: ETRD ETTC EIND ECON AU
SUBJECT: STEYR-MANNLICHER PLANS TO PHASE OUT ASSAULT

WEAPON PRODUCTION IN AUSTRIA AND SELL TECHONOLOGY


Summary

--------------


1. According to press reports, Steyr-Mannlicher GmbH

plans to phase out production of military weapons at its

Austrian facility. Steyr-Mannlicher will also reportedly

divest its Malaysia-based production during the first

quarter of 2006 and sell its weapons production

technology. The company's CEO, Wolfgang Fuerlinger,

cited legal and bureaucratic hurdles in obtaining export

licenses as a major reason for his decision to stop

military weapons production in Austria. End Summary.


2. The November 15 edition of the financial daily

"Wirtschaftsblatt" reported that Steyr-Mannlicher had

decided "some time ago" to phase out Austrian-based

production of its STG 77 attack rifles. According to

Wirtschaftsblatt, Steyr-Mannlicher currently produces

"only a few rifles" for the Austrian army and for an

Irish order. Steyr-Mannlicher will continue to produce

hunting and sports weapons in Austria.


3. Steyr-Mannlicher has operated its Malaysian

production facility as a joint venture with the Malaysian

National Aerospace and Defense Industries (NADI) since

April 2004. In September 2004, Amnesty International

released a press report maintaining that Steyr-Mannlicher

had effectively circumvented the EU's Code of Conduct on

Arms Exports by producing combat weapons in Malaysia,

from where Steyr could export to "any country in the

world." Currently, Fuerlinger is apparently conducting

talks with two unnamed consortiums that are interested in

purchasing the Malaysian plant. The Malaysian plant has

a capacity of 30,000 rifles per year.


4. Fuerlinger claimed that Steyr-Mannlicher "had never

requested export licenses for nations in conflict or

under embargo." Nevertheless, he complained that

Austrian ministries had often held up legitimate export

license requests. Fuerlinger told Wirtschaftsblatt that

in such cases, Steyr-Mannlicher had to resort to costly

and lengthy legal action to obtain the licenses.


5. If Steyr-Mannlicher carries through with its plans,

it will still have two plants in Austria and one in the

U.S. Despite the potential sale of its weapons

production technology, Steyr-Mannlicher will reportedly

expand its product range to include four types of hunting

rifles under the Mannlicher label, three models of

precision rifles and one pistol model under the Steyr

brand name, as well as "various new products."

VanVoorst