Armament (4): The Austrian armament complex

In the tank collection of the Army History Museum in Vienna, there are tons of witnesses from long gone times. The colossi made of steel are called "Saurer" and "Kürassier," and they make military personnel and engineers dream of the good, old - because demand-driven and development-strong - times of the Austrian armaments and heavy industry.

An industry that has changed significantly since the scandal surrounding the "Noricum" wonder cannons produced in Austria and illegally sold to the Middle East. And one that was reminded of this time nearly three years ago in the corners of the internet. A time when you were somebody.

Back in the autumn of 2015, the "Popular Mobilization Units" in Iraq released a propaganda video. The short film (see preceding video) is supposed to show the "Noricum" cannons (official designation: GHN-45) that were illegally delivered to Saddam Hussein and were subsequently repaired by members of this Shiite militia group, who are now using them to fire artillery shells at the fighters of the so-called Islamic State (IS).

The exposure of the illegal delivery of the guns in the early 1980s to both Iran and Iraq can also be seen as the beginning of the end for the classic Austrian arms industry. By the early 2000s, things were on a steep decline. But then - it seems - there was a turning point. The few remaining industry dinosaurs seemed to be recovering. And new players, completely unknown to the public to this day, were entering the market. Apparently with success.

Exports have grown significantly

During our research, we obtained detailed data on exports and exporting companies. The result: since 2002 (back then, the magazine Profil lamented the decline of the Austrian defense industry) the value of the annual exports of the industry has risen from 48 to an impressive 648 million euros in 2016. Impressive because Austria is, relative to its size and on paper, playing in the same league as Germany. Our neighboring country, the "export world champion," sold military goods worth "only" 6.8 billion euros in the same year, according to the Military Equipment Control Report.

The industry itself estimates its export share at 80 to 90 percent. And this is despite having one of - supposedly - the strictest export regimes in the world.

How did the old companies fade away? Who are the new flagship companies? And: do weapons and military goods from Austria today contribute to peace and security in their target countries?

High-tech instead of gunpowder and steel?

When you think of the arms industry, in most cases you probably think of firearms like the StG77 assault rifle, the "Saurer" armored personnel carrier, and - of course - the "Noricum" howitzers. Some of this classic industry still produces its goods here today. However, the overwhelming majority of companies producing military or dual-use goods in Austria are now in other fields. Where and which ones, you will find out in the following story.

The list now includes 133 companies.

Before Austria's arms industry specialized in many areas, it developed and produced predominantly heavy equipment - often in cooperation with the Armed Forces.

The Saurerwerke and Steyr-Daimler-Puch built tanks like the "Kürassier," "Saurer," "Greif," and "Pandur." Some were exported. Also legendary in expert circles are the transport vehicles "Haflinger" and "Pinzgauer," which were also developed during this time. Even successful to this day are the Glock pistol and the Steyr AUG (Army Universal Rifle or StG77), which were also developed during this time, played a role in the Armed Forces with its demand.

"Noricum" cannons to enemies in combat

VOEST manufactured howitzers for the legendary Canadian-born cannon engineer Gerald Bull and further developed them. The final product was eventually produced by the VOEST subsidiary Noricum. The demand for the high-quality artillery gun, which the Armed Forces themselves were not allowed to possess due to its long range, was so great that the weapons were even illegally delivered to the warring parties Iran and Iraq.

However, scandals like this also led the Armed Forces to order fewer and fewer. Since the 1970s, the defense budget as a share of GDP has declined significantly (see graphic).

However, research and innovation apparently cannot be stopped even by major cuts. After the dismantling of the Steyr conglomerate, the tank manufacturer ended up with the American defense giant General Dynamics and its vehicle division called General Dynamics European Landsystems. Today, they are developing prototypes for the global market as well as the new generation of the wheeled armored vehicle "Pandur" for the Armed Forces.

Even the firearms with the Steyr logo have been selling well for the past ten years under the new owners, and Glock is now one of the world's largest pistol manufacturers. The demand for these weapons, however, is fueled not only by authorities but particularly by the huge civilian market in the USA.

Drones, software, simulators

The major change in Austria took place outside the traditional arms manufacturers. Militaries and various security forces now need other products in the 21st century. Austrian companies develop and sell them. Schiebel is one of the better-known companies with its unmanned reconnaissance helicopters, as well as Diamond Aircraft with its surveillance aircraft.

One of the giants in the "new" defense sector is Frequentis. The Viennese company is now the world leader in safety-critical communication solutions for air traffic control, both civil and military. But the list of technology leaders is much longer.

AMST from Ranshofen in Upper Austria, for example, builds unique simulators for fighter jets that can simulate acceleration values up to seven times the force of gravity that occur in combat situations, both on the ground and for training pilots. 80 kilometers east of Ranshofen, in Schwanenstadt, Ulbrichts Protection is headquartered. The helmets made of titanium are considered technically leading worldwide and protect military and police personnel from shrapnel and bullets from firearms.

Turkey wanted tank engine from Graz

Companies like TTTech are likely less known to civilians. The Vienna-based company produces militarily hardened network components. One of the current prestigious projects they are involved in is the development of the new US combat and reconnaissance helicopter S-97 "Raider" by world leader Sikorsky.

A well-known name with a little-known business field is AVL List from Graz. The engine developer also has globally sought-after expertise in tank engines. Most recently, Turkey wanted to benefit from this knowledge. However, the deal did not materialize.

Majority of exports were and are weapons

Therefore, even though the overwhelming majority of companies are no longer directly involved in weapons, the Austrian defense industry continues to generate its largest revenues through them. Since 2002, military goods worth 4.752 billion euros have been exported. Half of this, 2.390 billion, were firearms (see graph).

Critics repeatedly point to the sensitivity of arms exports. Currently, the SPÖ party, for example, is very critical of the government's plan to centralize export permits for all military goods under one ministry. A parliamentary inquiry made this clear.

Weapons as tools for peacekeepers?

Still, some arms exports are approved with the argument that they would help maintain or enforce peace in the hands of appropriate deployment forces. In search of the value of this argument, we traveled to Stockholm. There, we met Dutchman Pieter Wezeman, a world-renowned expert at the unique Stockholm International Peace Research Institute, SIPRI.

Wezeman says there is an international consensus that weapons are indeed necessary for equipping peacekeeping forces. However, there are also significant examples where arms exports have fueled conflicts even further. One of these cases also involves Austria.

One person who manufactures and sells weapons is Gerhard Unterganschnigg. Since 2007, he has been a co-owner of Steyr-Mannlicher. The company produces - among other things - the StG77 assault rifle introduced to the Armed Forces. The weapon is exported from the plant in Kleinraming to about 70 countries around the world.

In his office in Vienna's Döbling district, we met a man who proudly and passionately produces, sells, and openly talks about the AUG. Unterganschnigg says that his products help duly authorized soldiers and police officers around the world to do their job and defend themselves. Do assault rifles create peace? Or more broadly: security? The 50-year-old spoke with us about this in the following video.

However, sometimes weapons from Austria end up in the hands for which they were not originally intended. While the aforementioned "Noricum" cannons were used by Shiite militias against the outlawed IS and therefore did not become a public debate topic, this was not the case with Glock and Steyr-Mannlicher firearms.

In the past, both companies supplied security forces and militaries in the region. Glock supplied the USA, for example, during their mission in Iraq, and Steyr-Mannlicher supplied Saudi Arabia. However, according to several media reports, weapons from these Austrian government-approved exports appeared in places where they shouldn't have due to violations of recipient countries against non-proliferation bans or unresolved material losses.

"Good are the weapons; it is only the intention that guides them that is just." - William Shakespeare

For example, the USA once bought pistols from Glock to equip the Iraqi police. However, Washington allegedly handled the delivery as negligently as Riyadh did with a delivery of assault rifles from Steyr-Mannlicher: The pistols ended up - at least in part - with Al-Qaeda. This was revealed through an examination accessible through Wikileaks cables. Glocks also appeared repeatedly with the IS. The sources remained mostly unknown.

The question of whether weapons create peace also preoccupied the playwright William Shakespeare. At the end of the 16th century, he wrote in Part 1 of the play Henry IV: "Good are the weapons, it is only the intention, that guides them, that is just."

Addendum article series on Austria's role in the arms market:

The introduction on SPARTANAT: Austria's Role in the Arms Business: Do Weapons Create Peace?

Part 1: Who Austria Supplies

Part 2: Austria's Armed Forces Want to Detect Chemical Agents for the EU and NATO

Part 3: In Context: Red-White-Red Armaments - Weapons for Peace?

Part 4: The Austrian arms complex

More to come...

This article was originally published on ADDENDUM. Copyright Text: ADDENDUM. Images: Lilly Panholzer/ADDENDUM. Video posts & graphics: ADDENDUM.

ADDENDUM on the Internet: www.addendum.org