by Joseph P. Tartaro | Executive Editor
Beretta USA, currently based in Accokeek, MD, has announced that the company will be building a new manufacturing facility in Gallatin, TN, as part of a $45 million expansion program. In a press release, Beretta stated that it expects to complete the construction of the Gallatin facility later this year, which will also bring along a minimum of 300 jobs.
“It is with pleasure that I appear before you today to announce our selection of Tennessee as the new home for Beretta manufacturing and development in the United States,” said Beretta executive vice president Franco Gussalli Beretta at a recent press conference.
According to Beretta USA’s general counsel and vice-general manager Jeff Reh, deciding upon the final site for the company’s expansion took months of consideration. Yet the legislative climate in states was a key factor for Beretta as it has been for other companies whose relocations have previously been announced.
“Around March 2013 the Beretta family decided to expand its manufacturing and business operations outside Maryland, where Beretta USA is located,” Reh said. “We started our search by looking only at states that have a consistent history of support for and likelihood of future support for Second Amendment rights.”
Two months after Beretta decided to expand elsewhere, Maryland Gov.
Martin O’Malley signed a set of strict new gun control bills into law. Beretta heavily opposed the new laws, leading some to speculate that the gunmaker might be leaving the state. While no changes have been announced yet for the company’s Accokeek factory, it is clear that Beretta plans on putting down roots in Gallatin.
“When Beretta chooses a location for its business, we start with the possibility that we will be in that location for decades, if not hundreds of years, to come. We move forward with confidence knowing that Tennessee is a great place to do business. We look forward to our opportunities here and we look forward to working side-byside with our new Tennessee neighbors,” Reh said.
Franco Gussalli Beretta credited Tennessee Gov. Bill Haslam for his persistence and skill in marketing the state as a place where the gun maker can grow. The company did not lack for suitors after it announced its intentions to expand, which also drew offers and interest from Texas Gov. Rick Perry and politicians from other states.
Founded in Italy in 1526, Beretta is the oldest family-run firearms manufacturer in the world.
In other business expansion news, Daniel Defense, one of the nation’s most popular AR-style rifle manufacturers, announced in late January that it plans to launch a five-year, $20 million program to expand its manufacturing and customer service operations near Savannah, GA.
The company, which was the subject of controversy in December over a non-gun Super Bowl ad that was rejected by the National Football League and Fox over its ban on gun advertising, says it plans to build out its facilities in Bryan County, GA, to 100,000 square feet “bringing every part of the manufacturing process in-house, which will in turn give us ultimate control over quality assurance.”
The move comes on the heels of a similar expansion in Ridgeland, SC, in 2012, where Daniel Defense built a 90,000 square foot facility.
The company is a rising star in the corporate world, making Inc.
Magazine’s list of the nation’s fastest growing companies in 2013 for the second year in a row. Founded by Marty Daniel and his wife Cindy in 2002 and winning several military contracts for M4 carbine rail systems, the company has since expanded to over 250 employees and last year sold about 32,000 rifles to both military and civilian customers.
“Maintaining the level of growth we’ve experienced over the last 10 years requires a long term vision, continued momentum, while maintaining the level of quality expected by our customers,” Daniel said in a statement announcing the five-year expansion.
The move is expected to bring in about 120 new jobs to the Black Creek, GA, facility and Daniel Defense says it plans to employ nearly 300 in Georgia by 2018.
Some of the American gun industry expansion targets export markets not just domestic consumers.
Crosman Corporation announced the opening of a new logistics facility in Copenhagen, Denmark, as part of a strategic initiative to accelerate order fulfillment to the company’s growing customer base in Europe. The European distribution center (EDC) represents a partnership between Crosman Corporation, Crosman Europe and DSV Denmark.
According to Phil Dolci, Crosman president and CEO, the new partnership provides transcontinental logistics to the European market with an extensive and compliant selection of products.
“Fulfilling orders faster and customizing products to satisfy EU countries’ regulation requirements are the cornerstones of our expansion strategy.
Enhancing that service to our European customers is a priority and we expect this facility to be a significant contributor to our international growth efforts,” said Dolci.
“Driven by the need to obtain long-term licenses that weren’t available in previous logistics arrangements, we made the decision to establish Crosman Europe as a legal entity in Denmark,” said Martin Stelling, general manager of Crosman Europe.
“It’s the affiliation with DSV Denmark that really sets us apart, as DSV is one of the largest global transport and logistics companies in Europe. With DSV handling warehousing and outbound logistics to all EU customers, our capacity to react quickly and offer customized products is greatly enhanced,” he said.
“Crosman Europe enjoys an excellent position now that we are able to deliver at speeds the market requires.
To my knowledge, we are the only foreign subsidiary in our industry that has invested the time and money to do this the correct way. I am proud to represent a company with such high standards of corporate governance,” Stelling added.
News Briefs Meanwhile, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) recently published a new Final Rule that, effective April 8, 2014, extends the standard term of import defense articles from one year to two years.
The additional time will allow importers sufficient time to complete the importation of the authorized commodity. In addition, it will eliminate the need for the importer to submit a new import application, ATF Form 6, where the importation was not completed within the one-year period. The National Shooting Sports Foundation (NSSF), the trade association for the firearms and ammunition industry, supported the change because it will significantly benefit both ATF and US importers without reducing ATF’s ability to administer the 27 CFR part 447 regulations and to ensure that importers are in compliance with federal law.
Tommy Thacker, a firearms industry veteran, has been appointed to the corporate presidency of ArmaLite, Inc.
Thacker brings nearly 20 years of top level management, sales and firearms experience to the company.
Prior to joining ArmaLite, he served as director, product management, for FNH USA, where he supervised the law enforcement and commercial product team responsible for testing, qualifying and launching firearm lines including the SCAR 16S, SCAR 17S, FNX pistols and the complete line of FNS pistols.
ATK reported that third-quarter sales in its Sporting Group, which includes ammunition for law enforcement, military and sporting applications as well as firearms, optics, reloading gear and sport-shooting and tactical accessories were up 78% to $524 million compared to $294 million in the same period last year.
The company’s third quarter results include the recently acquired businesses of Savage and Bushnell, and a 31% organic growth rate. Sales from Savage and Bushnell were $54 million and $85 million, respectively.
Sturm, Ruger & Company, Inc. announced in February that its Board of Directors has expanded its stock repurchase program from $8 million to $25 million.
The company is now authorized to repurchase up to $25 million of its common stock from time to time in the open market or through privately negotiated transactions. Ruger stock is traded on the New York Stock Exchange.
Following up its recently concluded, record-setting SHOT Show in Las Vegas in January, NSSF has added another year to its agreement with Sands Expo. Under the new terms, NSSF will put on the SHOT Show at Sands Expo through 2018.
The 2014 SHOT Show, which ran Jan. 14-17, attracted more than 67,000 in total attendance, an all-time high, and was the fifth consecutive SHOT Show held at Sands Expo.
SHOT Show is the fifth largest trade show in Las Vegas and the largest trade show of its kind in the world.
