RUAG Holding (originally Rüstungs Unternehmen Aktiengesellschaft; Joint Stock Defence Company) is a Swiss company specialising in aerospace engineering and the defence industry. Its headquarters are located in Bern, while it also has numerous production sites in Switzerland (Nyon, Aigle, Thun, Bern, Emmen, Altdorf, Zürich and Interlaken), Germany (Oberpfaffenhofen, Hamburg Wedel and Fürth), Sweden (Gothenburg, Linköping and Åmotfors), Hungary (Sirok, Eger), Austria (Vienna, Berndorf) and United States (Tampa and Titusville), and sales companies in Australia, UK, France, Belgium, Brazil and Malaysia. History Background and initial years During the 1990s, the government of Switzerland decided that the nation's military enterprises needed to be restructured, a view which led to the passing of the Federal Act on Federal Armaments Companies (FArmCA) in 1997. In accordance with this act, a new entity, known as RUAG Switzerland Ltd, was established to bring together four former state-run enterprises: SE Schweizerische Elektronikunternehmung AG, SF Schweizerische Unternehmung für Flugzeuge und Systeme AG, SM Schweizerische Munitionsunternehmung AG, and SW Schweizerische Unternehmung für Waffensysteme AG. Prior to this merger, these companies were comprehensively restructured with the intention of making them competitive commercial enterprises. RUAG formally commenced operations on 1 January 1999. Even prior to its establishment, RUAG was confronted by a severe challenge in the form of dwindling orders from the Swiss Armed Forces due to post-Cold War defence cuts having greatly diminished military spending. Recognising its overdependence on the Swiss military, which initially accounted for 86 percent of RUAG's sales, the company adopted a long-term strategy of diversification, progressively expanding its activities in the military and civil sectors both inside Switzerland and on the global market. This expansion went beyond only organic growth, necessitating numerous acquisitions, often focused in specific fields, such as aircraft and helicopter maintenance, repair and overhaul (MRO); command, information and communication systems; simulation and training systems; and small-calibre ammunition. Positive results were soon achieved. During 2000, RUAG's Aerospace division reported 39 per cent growth in sales on the third-party market, which were generated from various programmes of aircraft manufacturers, including Airbus, Boeing and Pilatus. Other business included MRO services to foreign Northrop F-5 fighter aircraft, repair work on AIM-9 Sidewinder missiles for the United States Air Force and production of payload fairings for the US's Atlas V launch vehicle. RUAG's Land Systems division was also had optimism in the civilian sector, performing component assembly for injection moulding machines used in compact disc production. By the