A steel worker manufactures 155 mm M795 artillery projectiles at the Scranton Army Ammunition Plant in Scranton, Pa., Thursday, April 13, 2023. One of the most important munitions of the Ukraine war comes from a historic factory in this city built by coal barons, where tons of steel rods are brought in by train to be forged into the artillery shells Kyiv can't get enough of — and that the U.S. can't produce fast enough. (AP Photo/Matt Rourke)
The French company “Verney-Carron”, which had a contract for the supply of weapons to Ukraine, applied to the court for bankruptcy protection. This is reported by Cybergun.
Verney-Carron, founded in 1820, is the oldest manufacturer of hunting and shooting weapons in France. In November 2023, “Ukrspecexport” and “Verney-Carron” concluded a framework contract for 36 million euros, which provided for the supply of 10,000 assault rifles, 2,000 sniper rifles and 400 grenade launchers. The first qualification batches were planned to be shipped in early 2024, and serial deliveries were to begin six months later.
However, the company warned in advance that it would be able to fulfill the contract only if it attracted additional investments to expand production. It is currently unknown whether the deal has been implemented in full, as financial difficulties and delays in the supply of products have been observed since 2021.
Before acquiring Verney-Carron in 2022, the arms manufacturer was already in financial trouble. After the purchase, 12 million euros were invested in the company, but these measures did not ensure its financial stability.
The possibility of selling Verney-Carron to a potential investor while retaining a minority stake is currently under consideration. Negotiations are also ongoing with government structures, including the French Ministry of Defense, regarding the protection of the company and its strategically important assets.
