Malaysia inks major rifles deal

BY CLARENCE CHUA AND JONATHAN CHEW

PETALING JAYA: Malaysia is set to become the sole global manufacturer of two models of Steyr assault rifles with a joint-venture agreement signed between the National Aerospace and Defence Industries (Nadi) and Austrian weapons-production giant Steyr Mannlicher Holding GmbH. 

“The collaboration between these two parties will create economic and technological spin-offs in Malaysia,” said Deputy Prime Minister Datuk Seri Najib Tun Razak after launching the new Steyr AUG A3 rifle at the Defence Services Asia (DSA 2004) exhibition here yesterday. 

GRIPPING MOMENT: Najib holding the Steyr AUG A3 rifle during the DSA 2004 exhibition in Petaling Jaya yesterday.

“Steyr Mannlicher will fully transfer the licence to manufacture and export Steyr rifles and pistols in the global market to Malaysia. 

“With full manufacturing and marketing rights located in this country, Malaysians will acquire the skills and knowledge to develop the weapon system to a higher degree of technical sophistication in future.” 

The joint-venture company Steyr Mannlicher (M) Sdn Bhd will relocate the production of its Steyr AUG A1 and A3 range of rifles to Kuala Lumpur, while its precision and hunting/civilian weapons production will continue at its Austrian plant. 

Currently, SME Ordnance Sdn Bhd and SME Aerospace Sdn Bhd, both subsidiaries of Nadi, have been making the Steyr AUG A1 weapons systems at its 113ha Batu Arang plant. 

Steyr Mannlicher president Wolfgang Furlinger said that a combination of qualified human resources and a stable political environment made Malaysia the obvious choice as a base for rifle production. 

“Malaysia's competitive edge can invariably make our products more affordable and technically superior compared to our competitors', hence increasing the overall attractiveness of our products,” he said. 

The agreement, witnessed by Najib, was signed between Furlinger and Nadi Group president Tan Sri Ahmad Johan. 

Ahmad said the venture would elevate the local defence industry to a level on par with other leading global arms manufacturers. 

The weapons Steyr Mannlicher make are being used by the armed forces of more than 40 countries, including Malaysia. 

The Steyr AUG (Armee Universal Gewehr, or Army Universal Rifle) was first produced in 1978, and is now said to be the most widely sold modern assault rifle, next to the AK-47 series.