SIG Sauer GmbH Shutters It’s German Doors

SIG Sauer is a big company with an impressive legacy, and today marks a darker chapter in its history. The German arm of SIG, SIG Sauer GmbH, located in Eckernförde, Germany, is closing its doors. The arms company has been struggling, and SIG Sauer GmbH shareholders have chosen not to increase their investment. 

Approximately 130 employees will be laid off as the German plant is closed. The German plant has been in operation since 1951 and has operated as SIG Sauer since 1976. SIG Sauer GmbH is a separate entity from SIG Sauer USA and Swiss company SIG Sauer AG. All three companies are owned by Lüke & Ortmeier Holding Gruppe, also known as L&O Holding. L&O Group also owns Mauser, Blaser, and Sauer. To be clear, this has no effect on SIG Sauer USA's operation.

Managing Director Tim Castagne told a German public broadcaster NDR, “Due to its international orientation, SIG Sauer is systematically excluded from tenders [in Germany].” 

His reference is to the Bundeswehr rifle replacement competition of which SIG Sauer has been excluded from due to the US nature of their weapon’s development. SIG Sauer GmbH has also run into legal trouble with the exportation of handguns to Colombia. That situation was resolved early last year. They has also been the target of German disarmament campaigners 

SIG Sauer GmbH released this statement:

The locational disadvantages in Germany for SIG Sauer do not economically allow for manufacturing of sports and LE/military firearms in the future.

Legislation is increasingly restricting the use of sports firearms.

When awarding public contracts, both the German police and the Bundeswehr prefer a few local producers. SIG Suer is systematically excluded from tenders due to its international orientation, most of its developments originating from the USA.

Nevertheless, the shareholders have made major financial contributions to the stabilisation of the company in recent years and the company has implemented drastic cost-cutting measures.

This was intended to secure the traditional company and jobs in Germany.

In addition to the existing problems, there are the current effects of the Corona crisis, which place an additional considerable economic burden on the continuation of business operations in Eckernförde.