We have taken note of the decision of the Federal Office of Bundeswehr Equipment, Information Technology and In-Service Support (BAAINBw) to withdraw the preliminary information letter. We are still convinced that we submitted the best offer, that our product was rightly selected and that we will be a reliable and worthy partner of the Bundeswehr. We are confident that any outstanding issues will be resolved in a timely manner.

Selection of the MK556

Our MK556 assault rifle is a proprietary development of the C.G. Haenel/MERKEL Group. There is no reference to the CAR816 assault rifle of CARACAL International LLC. The alleged patent infringements mentioned in a competitor’s request for review also relate exclusively to the CR223, a semi-automatic rifle for shooting sports. The MK556 is a different rifle with different design features to the CR223. It is not even mentioned in the patent lawsuit. The technology mentioned there is not used in the MK556. We further assume that there is no patent infringement with regard to the CR223.

C.G. Haenel is known as a reliable partner for public authorities with an excellent reputation. In addition to police and special units in Germany, our long-standing customers also include various NATO forces. The MK556, newly developed for the Bundeswehr, was convincing in the sum of practical testing, product performance and the most economical overall offer.

Our offer price results from a very economically calculated offer. After the final bid was submitted, the BAAINBw – as is customary in tender procedures – requested additional information and clarified the bid. All correspondence was in writing and transparent; there were no secret agreements at any time.

Shareholder structure C.G. Haenel & Capacity

The shareholder structure of C.G. Haenel is transparent. The shareholder is CARACAL International LLC. The shareholders have owned Merkel Jagd- und Sportwaffen GmbH (MERKEL) in Suhl Thuringia since September 2007. C.G. Haenel is a subsidiary of MERKEL and is located at the same site. Thanks to financial investments, the C.G. Haenel/MERKEL Group is well positioned and can afford top quality performance and innovative strength. Operationally, the C.G. Haenel/MERKEL Group is independent, decisions are made in Germany.

The C.G. Haenel/MERKEL Group has around 120 employees at its Suhl site. The management of MERKEL and C.G. Haenel is identical in terms of personnel and all C.G. Haenel products are manufactured with input from MERKEL. With our smart, modern and efficient manufacturing facility in Suhl, we can produce the MK556 in Germany. The production of the MK556 will be realised in Germany with a manufacturing share of around 90 percent and will also specifically benefit the economic region of southern Thuringia. The production area is more than sufficient for the Bundeswehr order and further orders, an expansion is not necessary.