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A little under two weeks ago Sig Sauer GmbH, based out of Eckernforde, Germany is set to close its doors permanently. According to German media outlets the company’s shareholders are unwilling to invest further capital into the struggling company.

Many factors have lead to the demise and closer of Sig Sauer GmbH. First, the company was excluded from Bundeswehr small arms programs due to ITAR restrictions. The Bundeswehr program was to find the Germany military’s next service rifle to replace the HK G36. Due to these ITAR restrictions Sig Sauer’s firearms are principally made in the U.S., by Sig Sauer, Inc. Second, are the increased restrictions and legislation from the European Union (EU) on firearm companies, like Sig Sauer GmbH.

The company we know today as Sig Sauer was originally formed back in 1976. It was a partnership between Schweizerische Industrie Gesellschaft (SIG) of Switzerland and J.P. Sauer & Sohn of Germany creating Sig Sauer. In the U.S. Sig pistols where originally sold under the name SIGARMS until it was renamed Sig Sauer, Inc in 2007.

Sig Sauer GmbH is a separate entity from the U.S. based Sig Sauer out of Newington, NH. Both companies are owned by Luke & Ortmeier Holding Gruppe. Luke & Ortmeier also owns Swiss Company Sig Sauer AG formerly known as Swiss Arms. Operations of Sig Sauer, Inc and Sig Sauer AG will continue operations as normal.

Below is the press release from Sig Sauer GmbH.

Press Release

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. Further, in New Hampshire, the company operates one of the most advanced training facilities in the world, SIG SAUER Academy.

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. German Sports Group (GSG), the current commercial distributor in Germany for SIG SAUER, Inc. optics, ammunition and air guns will expand its role to include commercial firearm sales in Germany.

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