The Bundesrat wants to sell the space technology company Beyond Gravity. Opponents of privatization see the company as a pawn for emergencies. The Council of States will decide on Monday.
Employees of Beyond Gravity in Zurich are building the new generation of weather satellites. The company is up for sale.
Since Donald Trump became President of the USA again, the world has been at the negotiating table. But only those who have something to offer can sit down and have a say. This is evident in the announced tariffs by the US government or the quid pro quo agreement between the USA and Ukraine: Trump will only agree to a reconstruction fund for Ukraine if he receives rare earth elements essential for technology products in return.
Niche products and industrial barter goods are in demand, especially for small nations. The federally owned space company Beyond Gravity is considered such a unique asset. It is the last part of Ruag International, the civilian branch of the Ruag group, which has nothing to do with the defense sector. In the European space industry, the company is the fourth largest player. It manufactures satellite walls and the fairing of the top of the Ariane 6 rocket for the European Space Agency (ESA).
Because Beyond Gravity generates over 95% of its revenue abroad, the government wants to sell the company. It lacks the legal basis to operate a globally active company. The security policy commissions of the federal councils agreed to the sale decision at the end of 2023.
Opponents of the sale speak of a strategic trump card
Last May marked a turning point. A proposal urged the Federal Council to recognize the “strategic dimension” of the company – “for Switzerland’s security, the innovation potential of our country, and its industrial dynamism.” The government should reconsider the sale and maintain “control” over the company.
The Federal Council rejected this. Beyond Gravity is not relevant to Switzerland’s security, as the company does not produce anything for the local army. Additionally, investments of CHF 500 to 600 million will be needed in the coming years. The state does not have these “financial possibilities,” explained Finance Minister Karin Keller-Sutter. The National Council was not swayed by this: with 121 to 52 votes and 6 abstentions, they clearly accepted the proposal.
This Monday, the Council of States will decide the fate of Beyond Gravity. The Security Policy Commission already voted in October to halt the sale. SVP Councilor Werner Salzmann stated after the commission meeting that satellites would be a key technology in the security sector in the future. Beyond Gravity could serve as a Swiss pawn for foreign technologies. “We need this expertise under federal control.”
Claude Meier, former Chief of the Army Staff and Senior Staff Officer at the Geneva Centres for Peace and Security Policy, sees the situation similarly. Meier emphasizes that it would be “a blatant lack of foresight” for the government to divest from Beyond Gravity. The company is an important strategic asset. In the future, Switzerland will be even more dependent on technological key components from abroad.
He cites the expected restricted access to state-of-the-art computer chips from the USA starting in May as an example. Minister of Economy Guy Parmelin is seeking a solution with Washington. Owning exclusive technologies and competencies, such as in space technology, can serve as a bargaining chip in such cases, says Meier. For this to happen, the government must retain control over the company in some form. Meier suggests a model similar to that of Swisscom. The telecommunications company is 51% owned by the Swiss Confederation.
The Swissmem argues that the government is “completely unsuitable” as an owner
Swissmem, the association of the Swiss tech industry, argues diametrically opposed. There are several companies in Switzerland that produce “essential goods,” according to spokesperson Noé Blancpain. “Nevertheless, fortunately, the government would never think of nationalizing them.” A company like Beyond Gravity must be able to continuously take entrepreneurial risks to defend its “indispensability.”
The government, “along with parliamentary regulations,” is therefore “completely unsuitable” as an owner. Even a majority stake like that of Swisscom is not a good solution, as the money for investments will still be needed. A stagnating – and therefore ultimately failing – company brings “nothing to the state,” according to Swissmem.
Swissmem advocates for privatization, if possible to a Swiss buyer. “This also covers the concerns of the ESA Director,” the association writes. In early February, SRF reported that the Director of the European Space Agency (ESA), Josef Aschbacher, criticized the government’s sale plans. In an interview with NZZ, Aschbacher clarified his statements. He welcomes the sale of Beyond Gravity, “as long as it is conducted under the right conditions,” he said.
Beyond Gravity does excellent work. It is not easy for the ESA to find another company that can offer similar quality. Therefore, it is important for the space organization that the company has its production site and headquarters in one of the 23 ESA member countries.
A proposal by FDP Councilor Josef Dittli now demands that Beyond Gravity be sold “whenever possible” to Swiss companies or investors. According to President Keller-Sutter, a Swiss buyer would be the strategic “ideal scenario.” There are rumors of a domestic consortium interested in buying Beyond Gravity. However, nothing seems to be finalized here yet.
Beyond Gravity manufactures important components for the European Space Agency (ESA).