Steyr Arms Pushes Expansion - Austria as a Location in Danger?
The Austrian arms manufacturer Steyr Arms, part of the Czech investment group RSBC since 2024, is planning extensive expansion in the US and European markets. At the same time, the site in Austria is coming under pressure as export licenses are being delayed. While the company management wants to secure the future of the traditional business with new strategic decisions, a relocation could be considered.
Austrian soldiers with a Steyr StG 77 KPE during a combat exercise. / Picture: © Wikimedia Commons; Austrian forces at Combined Resolve II;CC BY 2.0 Generic (CC BY 2.0 DEED, https://creativecommons.org/licenses/by/2.0/deed.en)
Steyr Arms has undertaken a significant restructuring at the management level. Milan Šlapák, previously CEO of the RSBC Group, takes over the operational management of the company. He brings over 20 years of experience in leadership positions at General Electric and will focus on innovation and more efficient business operations. Former CEO Tim Castagne, with more than three decades of experience in the defense industry, will serve as Vice President of Sales and Business Development, driving market expansion, strategic management of the product portfolio, and new acquisition opportunities. These personnel changes are intended to simplify the management structure, accelerate decision-making processes, and intensify product development. A particular focus will be on adapting the product strategy to the specific requirements of the US market.
Steyr Arms: A traditional company with a global reach
Steyr Arms, founded in 1864 and headquartered in Steyr, Austria, employs over 200 people and achieved a turnover of more than 45 million euros in 2023. The company is known for its hunting rifles under the STEYR Mannlicher brand as well as firearms for the police and military. The iconic Steyr AUG, one of the company's best-known products, is an integral part of the equipment of more than two dozen armies worldwide and is used by numerous special police units.
The Steyr AUG: A successful model with cult status
The Steyr AUG (Army Universal Rifle) or StG 77 in the Austrian army is one of the most innovative assault rifles of its time and is one of the first successful bullpup designs with the magazine positioned behind the trigger. This design enables a compact construction with a long barrel length, which combines precision and maneuverability. The AUG was developed for the Austrian Armed Forces in the 1970s and has since been widely used internationally and is still popular and in-service use today in modernized forms. It is not only the standard armament of the Austrian Armed Forces but is also used by armed forces in countries such as Australia, Ireland, Malaysia, and New Zealand. Thanks to its modularity, the AUG can be adapted to different operational scenarios with different barrel lengths and accessories, making it a popular choice for military and police units.
Location Austria: future uncertain?
Despite these positive developments, the STEYR ARMS site in Kleinraming, Upper Austria, is facing considerable challenges. According to reports, there are massive problems with the granting of export licenses by the Austrian Foreign Ministry. As a result, thousands of finished assault and sniper rifles cannot be delivered. Among others, orders from Oman and Iraq are affected, although there are long-standing business relationships with these countries. Orders from Malta, Serbia, Montenegro, and Turkey are also affected by these delays.
The company management has already expressed its criticism of these developments. “Our customers are now telling us directly: either you deliver soon, or we buy from other EU countries or the UK or the USA,” says a spokesperson for Steyr Arms. The owners of the company are therefore examining possible alternatives for the company headquarters if the situation does not improve. The Austrian Foreign Ministry, on the other hand, emphasizes that all business cases are examined with the utmost care. Particular attention is paid to the security situation, human rights, the possible risk of the detour of the weapons, and obligations under international law.
RSBC Group: Investment with a focus on growth and security
RSBC Holding a.s. is a private Czech investment group founded in 1998 by Robert Schönfeld. Originally intended to manage restituted family assets, RSBC has developed into a broad-based investment group. Its portfolio comprises four strategic pillars: Real Estate, Private Equity, Investment Funds, and Asset Management Services.
A particular focus is on the defense sector, where RSBC is strengthening its market position through targeted acquisitions such as those of STEYR ARMS and the Slovenian weapons manufacturer AREX. The Group is pursuing a long-term growth strategy and sees considerable potential in the European and international security industry. RSBC focuses on investments that both preserve conservative values and enable sustainable expansion.
Strategic partnerships and future development
The RSBC Group sees exceptional growth opportunities in the defense sector and is focusing on increased cooperation between Steyr Arms and the Slovenian company AREX. The Slovenian company, also owned by RSBC, specializes in small arms and protective equipment. This cooperation is intended to create synergies, expand the product portfolio, and strengthen the market position of Steyr Arms on the global market.
In the coming months, STEYR ARMS will have to make groundbreaking decisions. In addition to further international expansion, it remains to be seen whether Austria will be retained as a production location or whether the company will relocate its headquarters to another country. Developments relating to export licenses could play a decisive role in this.