Elbit and Ruag will establish a joint venture to serve the Swiss army

Elbit signed a memorandum of understanding with the Swiss company Ruag for the establishment of a joint venture. The project will be established in Switzerland, will be controlled by Elbit Systems, will be consolidated into its financial statements and managed by a joint team of the two companies.
The joint venture, which will serve as a national center of excellence in communications and systems, was established after Elbit Systems reached the conclusion that it must strengthen its presence in the Swiss market by creating a base of development and production in Switzerland. The company estimates that in light of the increase in Switzerland's defense and procurement budgets and the fact that the Swiss army needs the core systems required for local support and maintenance, it must establish a local operations base capable of developing technologies for the Swiss army and support capabilities for the products it supplies.
Elbit Systems believes that its partnership with the largest defense company in Switzerland, owned by the Swiss government, will improve its chances of winning the largest procurement tenders published by the army in the country. The Swiss defense budget in 2017 was $ 4.6 billion.