RUAG sells Australian subsidiary to ASDAM
RUAG International has agreed to sell its Australian military and civil aerospace MRO business to ASDAM.
‘ASDAM takes over all activities of RUAG Australia including all employees at all locations in Australia,’ RUAG announced in a statement on 1 April, adding: ‘The sale is expected to be completed in the coming months.’
The acquisition by Australian company ASDAM remains subject to regulatory approval, but it aligns with efforts by the Australian federal government to develop and enhance sovereign industrial capabilities.
ASDAM is already the largest Australian supplier to the F-35 Joint Strike Fighter (JSF) programme. The company has relationships with global prime contractors such as BAE Systems, Boeing, Lockheed Martin, Northrop Grumman and Pratt & Whitney.
RUAG Australia is also involved in the F-35 programme by sustaining 60% of JSF components in the Asia-Pacific region. However, parent company RUAG International has been keen to exit the defence and aerospace sector to focus on the space domain, in line with a divestment strategy defined by the Swiss Federal Council.
More from Defence Notes
-
US lawmakers warn that “more military spending is absolutely necessary” to ensure Pentagon’s readiness
The US Congress has raised concerns about how inflation rates and cuts in main acquisition programmes could affect the US military.
-
Can the US overcome Russian and Chinese nuclear capabilities?
Washington’s ageing inventory and the pace Moscow and Beijing have been modernising their capabilities put in check the US Nuclear deterrence.
-
US FY2024 funding package passes as China closes military capability gap
The Pentagon has been operating under temporary funding since October 2023, which has impacted its main acquisition and development programmes, increasing the capability gap between the US and China.
-
NATO outlines future challenges as Ukrainian funding from US stalls
In 2023, defence spending increased by an unprecedented 11% across European NATO countries and Canada. Since 2014, the group has spent an additional US$600 billion on defence.
-
US Pentagon to reduce investments in main acquisition programmes over FY2025
The DoD requested nearly US$850 billion to fund operations over the next fiscal year. Despite the amount being 1% higher than the FY2024 budget request, it has not covered the 3% inflation rate, which could impact the DoD’s main programmes in the medium and long term.