The Australian small arms industry is undergoing a renaissance but one business is finding its efforts to attract investment stymied by banking policies and NSW regulations.
There are at least six commercial-scale Australian firearms manufacturers operating now: Lithgow Arms, Warwick Small Arms, Oceania Precision, Southern Cross Small Arms, Eureka Gun Company and Enfield Arms.
All of them make (or are developing) high-quality, internationally marketable products, designed for Australian conditions and our rather limiting firearms laws.
Oceania Precision managing director and lead designer Jeff Bacon said since starting the Tamworth-based business just over five years ago, it had such a strong demand for its line-up that it was struggling to meet demand, resulting in lead times lead times for some models stretching out as long as a year.
“Australian made is popular here and internationally,” he said. “We get inquiries every week from NZ, UK, Canada and others because of our commonality in regulations.”
As a result, Oceania Precision is seeking significant investment to drive the company forward to meet local and international demand — but it’s not a straightforward process.
Oceania Precision is aiming to buy new machinery to increase its output
“We have quickly outgrown our current operation and are wanting to take the business to the next level and are looking for someone to come on the journey with us,” Jeff said.
Most businesses needing a large-scale financial injection can apply to their bank for a loan, or organise some sort of crowdfunding solution, but banking Environment, Social, and Governance (ESG) policies generally prohibit banks from providing business loans to firearm manufacturers such as Oceania Precision.
“Being turned away due to bank policy is frustrating to say the least,” Jeff said.
“It makes it all but impossible to run a start-up without access to traditional means of raising capital.
“It’s a challenging enough regulatory environment on its own without discriminatory roadblocks like this.”
While crowdfunding, or getting multiple investors, seems like another potential solution, Jeff said due to the way NSW laws regarding firearms businesses were written, every investor was potentially considered a “Dealer’s Associate” and required to pass the associated background and probity checks, even if their investment was a modest one.
“NSW regulatory challenges virtually prohibit multiple investors or crowd funding means of raising capital,” he said.
Jeff said Oceania Precision was keen to establish itself in the defence industry, which would be possible with the appropriate investment.
“Innovation has been our strength with securing patents and design protection on key components,” he said. “We hope to leverage this innovation into the defence sector.
“Trialling of our new IRL (inclined radial locking) bolt design in the automatic M4 rifle family continues to impress, with more in-depth third-party testing to be completed next year.
“After compilation of results and qualification we will be offering a battle rifle in both 5.56mm and 7.62mm NATO for law enforcement and defence, based around our enhanced bolt design.
“I’m also excited to be releasing our NSW-approved compliant rifles in .223 and .308 next year, along with others that have been in development.”
While acknowledging the six-figure investment needed to help Oceania realise its potential was a large one, Jeff believed it would prove worthwhile.
“It is a significant investment in new equipment, but the demand is there and with our strength in innovation we are aiming to be a competitor in the global market,” he said.
“Please reach out via email (sales@oceaniaprecision.com.au) for further information if this is of interest to you.”
Source link : https://sportingshooter.com.au/news/expanding-aussie-gun-maker-oceania-precision-looking-for-investors/
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Publish date : 2024-07-11 19:28:00
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