Heckler and Koch $160 Million in Debt, Banking on New Machine Gun Contract for Future
According to a Guns.com article, famed German gunmaker Heckler and Koch (H&K) is currently $160 million in debt, which is, in fact, more than the company is currently valued.
H&K is currently only doing enough sales to cover the interest on its debt.
Despite the popularity of their firearms in the civilian market, the bulk of H&K’s revenue is from military contracts, and they just landed a big one.
The company is optimistic that their new machine gun, the HK 121, will prove to be lucrative as they prepare to begin delivering the guns to the German military as part of a $185 million contract.
The gun may also prove popular with other militaries due to its versatility. The same platform can be used as a traditional standalone machine gun, shoulder mounted rifle, or mounted on vehicle turrets, making it attractive to militaries who want to standardize their weaponry.
From their website, the HK 121 is described as having the following features.
- Cocking in all safety positions
- Withstands barrel obstruction test to NATO-AC225/D14 standards (soft core and Steel core ammunition dm111a1, dm151)
- Can be installed on all mounts and tripods originally developed for MG3 machine guns
- Full day and night fighting capability
- NATO-STANAG 4694 mouting rails (compatible with MIL-STD-1913 Picatinny rails) for a variety of day and night sights or additional Accessories
- Fixed, foldable and length adjustable buttstock options
- Mission related optional barrel lengths (quick change barrel with carrying handle)
- Tool less and simple reconfiguration to a Mounted, universal, Special forces or Infantry Machine gun
- Robust and reliable even under extremely adverse environmental conditions
- 3 position rate of fire adjustment
- Special buffer reduces recoil forces and stabilises the rate of fire
- Ambidextrous safety/fire selector lever
- Almost identical operation to mg4
- Belt feed with loading indicator
- Machine gun for engagement of point or multi targets (support/suppressive fire)
- Mounted as field/vehicle machine gun or deployed as an anti-aircraft Weapon (e.g. on FLw100)
- Integrated as a secondary or coaxial armament (e.g.Puma turret configuration)
- Sustained fire support weapon for mobile infantry
According to Guns.com,
The MG5 can also feed a number of different types of ammunition, from standard 7.62 NATO disintegrating belts, 50-round quick-loading drum canisters and separate belt boxes. It is compatible with a number of different mounting systems, including M3 tripods, standard German vehicle mounts and American M122A1 tripods. It also has a side-folding stock to make easier to transport and an adjustable rate of fire for different mission types.
From H&K’s website,