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Defence & Security News - (Heckler & Koch)
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| Heckler & Koch strengthens its position and aims at the new French rifle | |||
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The private German arms manufacturing company Heckler & Koch AG took steps in securing its financial position after the German MoD’s decision to withdraw the G36 rifles due to malfunction problems and block its exports to some of the Middle Eastern customers.
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 The HK416 automatic rifle was selected by the Norwegian Arme Forces in 2007. (Photo: Norwegian Army)
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The company’s majority shareholder, Andreas Heeschen, injected a total of EUR60 million, increasing the liquidity to EUR73 million up from the EUR13 million that was at the end of September. The renewed liquidity will allow the company to repay interests and a loan from shareholders, upgrade its credit rating from “CCC” that it is now to “B” and reduce debt by one third, to almost EUR200. According to an email from Andreas Heeschen that was sent to the company bondholders, the aim of H&K is “to send a strong signal to the clients that Heckler & Koch continues to be a reliable and growth-oriented partner”. Furthermore, he stressed that the company “is an important element of the supply chain and the security infrastructure of Germany and its NATO partners” and projected that Europe would face an increasing number of international conflicts. Taking his last remark a step further and in conjunction to the recent Paris attacks, he stressed that there would be growing need for the German defence products, according to a report by the German newspaper Die Welt. Regarding H&K he said that they should develop new products and do their best to win the French Armed Forces contract for 90,000 new rifles, which is due to be decided in the coming June. H&K is taking part in the bidding with the HK416, 5.56mm automatic rifle, along with other companies such as FN Herstal and SIG Sauer. |
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