Däniken in the Canton of Solothurn, Switzerland.
A golden age dawns for the Hungarian defense industry, with the Swiss following the Germans in relocating here. This could completely cripple the Swiss defense industry, but the federal parliament is not even willing to consider the necessary legislative changes.
Following Germany’s Rheinmetall, Switzerland’s Saltech is also bringing significant capacity to Hungary. László Palkovics, former Minister of Innovation and Technology in the Viktor Orbán government, who said in an interview with Világgazdaság in 2021 that Hungary’s military industry would become a major player in the region by 2030.
Although the minister was primarily counting on German and Austrian military companies moving in, has already happened, mainly thanks to Rheinmetall’s factories, the forecast and preparatory work have now been confirmed by Switzerland.
As a report reads by the Swiss Tages-Anzeiger portal, the Czech Colt CZ group, to which Saltech also belongs, has confirmed that the production of 12.7 mm ammunition will no longer take place in Däniken, but in Hungary.
The ammunition is used for heavy machine guns, including by the Swiss army. About six years ago, in 2019, Saltech, which advertises itself with the Matterhorn, received a large order worth 100 million Swiss francs (cc. 108 million euros) from the federal government to manufacture these cartridges.
Saltech délocalise sa production de munitions en Hongrie face aux restrictions suisses – 20 minutes https://t.co/hqTCBZufSI
— Eliska Vytlacil Business Club Suisse.ch (@EXPRAHA) November 3, 2025
As the portal confirms, Saltech, which was sold to the Czechs in 2023, decided in favor of Hungary mainly because, on the one hand, the Czech-controlled group already has a company there and, on the other hand, Swiss arms export rules are quite strict.
For this reason, many NATO countries exclude Swiss suppliers from tenders, which is not a problem in Hungary’s case due to its NATO membership.
In addition, the Swiss army’s procurement volumes have also decreased. “We made this decision to ensure long-term operational flexibility within the group while complying with all Swiss export regulations,” the Czechs added.
In any case, it is a consolation for the Swiss that the relocation will not affect the approximately 80 employees of Saltech in Däniken and Dulliken. “We believe that our business activities will continue to provide the same number of jobs for our employees,” Colt CZ writes.
Photo: Pexels
The employees of another Swiss ammunition manufacturer, Swiss P Defence in Thurn, were not so lucky, as the company, which was sold to the Italian Beretta in 2022 and is also struggling with serious economic difficulties despite the global boom in arms manufacturing, laid off dozens of people at the beginning of the year.
Due to the losses and layoffs, there are justified fears in Switzerland that production will also be shut down here or relocated abroad.
Swiss politicians representing the affected districts are increasingly concerned about the local arms industry due to the mounting problems. Parliament has begun debating the relaxation of export regulations and cooperation between the Swiss Confederation and companies in difficulty in the arms industry, but the Confederation is not yet willing to consider any legislative changes.
Via Világgazdaság; Featured image: Wikimedia Commons
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