Chapter 207: Mass Production Capacity

After being silent for a while, Zhao Yu said: "The problem is not very big. Pen @ fun @ pavilion wWw. biqUgE怂 ļ½‰ļ½Žļ½†ļ½ā€

Wang Dong didn't say anything, still staring at Zhao Yu, obviously not very satisfied with the answer given by Zhao Yu.

"Although the time is a bit tight, according to the performance indicators proposed by the Saudi Ministry of Defense, I can design a universal gun cartridge based on the 6.6mm gun cartridge."

"No problem at all?"

Zhao Yu nodded and replied.

"Hurry up." Wang Dong did not continue to embarrass Zhao Yu, but said, "The second problem is that we do not have mass production capacity for the time being. ā€

Obviously, the problem is even more serious.

Half a year ago, after winning the order from Saudi Arabia, Wang Dong proposed to acquire the Belgian FN company through cooperation with BAE Systems to obtain the necessary production line for the mass production of DF series firearms, especially the barrel precision forging machine that cannot be obtained through other channels.

It's not so easy to turn ideas into action.

In order to deliver on time, the production department managed by Zhao Yu worked overtime, and so far only 1,000 DF762N rifles have been delivered to Saudi Arabia.

Because the cost of manual production was too high, D&F did not make much money.

Wang Dong and others are also very busy.

In addition, Wang Dong did not expect Mohammed to take the position of crown prince so quickly, so he did not rush to communicate with BAE Systems.

As for the acquisition of FN Company, it is not even a word.

Now, the problem is exposed.

In the tender letter of the Saudi Ministry of Defense, it is clearly mentioned that except for the first batch of 5,000 rifles and 500 machine guns directly provided by the winning bidder, other firearms must be produced in Saudi Arabia, and the winning bidder must cooperate with the state-owned enterprises designated by the Saudi Ministry of Defense to set up factories, provide a full set of production equipment, and transfer the patents and production licenses of firearms and ammunition before the official mass production.

D&F doesn't have a production line of its own, so why should it go to Saudi Arabia to open a factory?

Among them, the most important thing is the precision forging machine for the production of gun barrels.

Looking for another company to OEM?

Yes, but only for the civilian market.

For such a large order with billions of dollars, even if D&F companies are willing to pay a high price, companies with production capacity may not be willing to OEM.

In addition, exporting a barrel forging machine requires approval from the government of the host country, which is definitely not an easy task.

The only way is to buy a business that has a production line.

As for the export barrel forging machine, if BAE Systems can be involved, plus the relationship between Saudi Arabia and the United Kingdom, the problem should not be very big.

Although BAE Systems has several arsenals that produce firearms, before Brexit, they were sold to other European arms companies through dismantling, and only the R&D department remained, and did not have the production capacity to mass-produce firearms.

The acquisition of FN became the only option.

In fact, it is also the most reasonable choice.

According to the intelligence gathered by Nicholas, FN is in the worst financial position among several well-known European firearms companies with mass production capabilities.

Needless to say, H&K, as the world's largest firearms company, is backed by a German group holding company, and its financial position is very good.

For example, Italy's Beretta, Spain's Astra, and even France's GIAT Group's Saint-Etienne Arsenal are not in bad shape, and there are no financial problems for the time being, so there is no need to sell shares to obtain funds.

The reasons for FN's decline are complex.

To put it simply, several of FN's fist products are well received.

The performance of the SCAR series of rifles is extremely excellent, and it can be said that it is a benchmark for modern rifles, and the shadow of SCAR can be seen on many new firearms.

However, in addition to being purchased in small quantities by the US special forces, SCAR has not been recognized so far.

Even on the European continent, SCAR has repeatedly failed, for example, three years ago, the French gendarmerie special forces abandoned SCAR in favor of HK416.

It's not that SCAR isn't good enough, it's that FN is in Belgium.

For political reasons, when the performance of firearms is comparable and there is no obvious gap, most customers will consider the German company H&K first.

In addition, it is also related to the development direction of the problem.

The most representative ones are the P90 and FN57.

When the concept of "individual self-defense weapons" was popular all over the world, FN invested heavily in the development of the extremely high-performance 5.7mm bullet, and based on this, developed a unique, if not a bit alternative, P90 individual self-defense weapon.

It's a pity that for so many years, the P90 has only been adopted by the special forces of a few South American countries.

Instead of learning from the lesson, FN went down this path and developed the FN57 pistol with just as good performance by improving the 5.7mm cartridge.

The result was even more tragic, and the FN57 was not accepted by the market at all.

In contrast, H&K has a clear better understanding of how the market works.

After following the trend and developing the MP7 self-defense weapon based on the 4.6mm bullet, H&K immediately discovered the problem.

Although it was favored by the Wehrmacht and adopted as a standard equipment, it was not long before H&K introduced the MP7 to the market under the name of a submachine gun.

The point is, H&K didn't continue to make a fuss about the 4.6mm bullet.

When participating in the bidding for the combat pistol of the US special forces, H&K took out the Mk23 large-caliber pistol and finally won the contract.

It can be seen that the FN company suffered extremely serious losses in 5.7mm ammunition, as well as the P90 and FN57.

Although FN has regained its reputation with the SCAR series of rifles, the exorbitant price makes it difficult for SCAR to compete with the AR series in the civilian market.

Excessive R&D investment and poor market performance have made FN's business unsustainable.

In the words of Nicholas, it is a miracle that the FN company has not declared bankruptcy so far.

Of course, it is not a miracle, because BAE Systems, the German group holding, and the French GIAT group are all shareholders of FN.

If the UK does not leave the EU, FN will receive financing by way of a reallocation of shares.

However, the United Kingdom has left the European Union, and BAE Systems, which has a 15% stake, will certainly not provide financing, nor will it necessarily sell its shares cheaply.

If it drags on, what awaits FN is bankruptcy and collapse.

In fact, after Saudi Arabia's defeat to D&F, FN was one step away from going out of business.

This is exactly the opportunity that Wang Dong sees.

BAE Systems is certainly not going to help the arms companies of the continent grow, and is equally reluctant to devalue their shares.

To put it simply, BAE Systems would definitely want to sell its shares in FN, preferably to a local company, and sell it for a good price.

From this point of view, the D&F company registered in Edinburgh is the only "pick-up man".

That is, D&F can come up with enough money to buy the stake held by BAE Systems.