Defence group Ruag to be split up
Ruag, the armaments group with close ties to the Swiss Confederation, is to be split up. The business units working for the Swiss Armed Forces are to be separated from the international divisions. A partial privatisation of the international division will also be examined by the end of the year.
The Swiss armaments group Ruag is being reorganised. From the beginning of 2020, a new company, MRO Holding, or its subsidiary MRO Switzerland, will ensure that the Swiss Armed Forces are equipped as required by law. This was announced by the Federal Department of Defence, Civil Protection and Sport (DDPS).
New umbrella company planned
In March of this year, the Federal Council decided that the company should be split up. It approved the concept presented. The cost of the demerger is estimated at between CHF 60 and 70 million. They are to be borne by Ruag.
This includes the maintenance and repair of army equipment and the upkeep of "mission-relevant systems", such as the F/A-18 fleet. These tasks were previously performed by Ruag Defence and Ruag Aviation.
A second company, Ruag International, is to offer services on the market. This will also include non-safety-related areas such as Ruag Space, Ruag Aerostructures, Ruag Ammotec and Cyber. Both companies will be brought together under the umbrella of a new holding company.
Increase safety
Following a cyber attack on Ruag between 2014 and 2016, the Federal Council decided this March that the company should be split up. At its meeting, it now approved the concept for this.
The Federal Council writes that the unbundling would separate the financial flows and IT systems of the two companies and thus increase security. This is because the IT systems of MRO Switzerland must meet the security standards of the Armed Forces because their services are necessary for Armed Forces operations in all threat situations. (Source: sda/mm)
