SIG Sauer Will Shut Down German Firearms Production Facility

SIG Sauer Eckernförde fireams production facility. Photo credit Alexander Losert, SIG Sauer

The parent company of SIG Sauer USA and SIG Sauer Germany will be shutting down a production facility in Eckernförde, Germany. SIG Sauer firearms production will continue elsewhere. One big reason for the shutdown, experts report, were the anti-gun policies of the current German government. In addition, because SIG Sauer is a multinational enterprise owned by Lüke & Ortmeier Holding Gruppe (L & O Holding Group), it was excluded from many German military and police contracts. Also the economic effects of the COVID-19 Pandemic hurt the company. SIG executives* stated:

“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 Sauer is systematically excluded from tenders due to its international orientation, most of its developments originating from the USA. 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”.

So what SIG Sauer guns have been produced in the Eckernförde factory? German website All4Shooters answered: “A large part of [SIG Sauer’s] European catalog products comes from Eckernförde, Germany. In addition to the complete P220 and P226 X series, this includes the P210 series, various classic P226/P229s, as well as the SSG 3000 and STR rifle lines.”

What is the Future for SIG Sauer USA?
The Shooting Wire noted: “With L&O Holding Group’s announcement [that] SIG Sauer GmbH division in Eckernforde, Germany was being shut down, the speculation began almost immediately as to what the impact might be on SIG Sauer’s operations in Newington, NH. Since the U.S. operation has recently celebrated scores of defense and law enforcement contracts, any disruption in that operation could have a significant impact on the status of our military and many law enforcement agencies.” However, SIG’s official release affirmed that SIG Sauer USA will “continue business as usual”.

SIG Sauer Official Statement about USA Operations:

L & O Holding group has announced that it is closing its SIG SAUER, GmbH (Germany) division in Eckernförde, Germany. L&O Holding owns and operates numerous business units in the defense and hunting market including SIG SAUER, GmbH (Germany), SIG SAUER, Inc. (U.S.A.), and German Sports Group, GmbH (GSG), among others.

SIG SAUER, Inc. operations in the U.S. will continue business as usual. The U.S. based division, headquartered in Newington, New Hampshire, has over 2,300 employees throughout 9 facilities in New Hampshire, Arkansas and Oregon where the company designs and manufactures firearms, ammunition, optics, suppressors and air guns[.] SIG SAUER, Inc. markets and distributes its U.S. made products in 88 countries. The SIG SAUER, Inc. International Sales Team, based in Europe, will expand its responsibilities to include the German market.

SIG Sauer Rifle and Pistol Production Will Continue in the USA

What Went Wrong in Germany for SIG Sauer?
Why did SIG Sauer Suffer Business Setbacks in Germany? The Firearm Blog (TFB) suggested multiple issues: “A number of factors have led to the downturn in SIG Sauer GmbH’s fortunes, [including its] exclusion from Bundeswehr small arms programs due to ITAR restrictions (as the company’s firearms are principally developed in the US, by SIG Sauer, Inc). The impact of the European Union’s increasingly hampering firearms legislation and recent legal issues have also been factors. The ongoing Coronavirus Pandemic has also no doubt played a part with sales slowing significantly in 2020.”

SIG Sauer Company Background and Organization
SIG Sauer was created in 1976 as a partnership of Swiss company Schweizerische Industrie Gesellschaft (SIG) and German enterprise J.P. Sauer & Sohn. SIG Sauer products were sold in the USA under the SIGARMS brand for some years, and then SIG Sauer Inc. was created in 2007. Currently, under L & O Holdings, SIG Sauer runs as three entities: SIG Sauer, GmbH (with Eckernforde facility), SIG Sauer, Inc. (U.S.A.) and SIG SAUER’s International Sales Team (based in Europe).

* In a press release to German media, SIG Sauer Mng. Dir. Tim Castagne declared that “SIG Sauer [GmbH] is systematically excluded from the tender because of its international orientation.”