Taurus Armas is leveraging its U.S. production to mitigate tariff impacts, with CEO Salesio Nuhs confirming that 85% of its 7,000 daily weapons are exported to the U.S. They are acquiring Turkey’s Mertsav, aiming for a diverse firearm portfolio, while also exploring a joint venture in Saudi Arabia.

Taurus Armas, a prominent Brazilian gun manufacturer, is positioning its U.S. production facility to mitigate the adverse effects of tariffs recently instituted by President Donald Trump. Chief Executive Salesio Nuhs indicated that this strategic move is essential to maintain operational viability in the competitive U.S. market.

Currently, Taurus produces approximately 7,000 firearms daily at its Brazilian factories; notably, 85% of its output is directed towards the U.S. Meanwhile, their U.S. operations possess the capacity to assemble an additional 3,000 weapons each day. Nuhs emphasized the company’s vigilance regarding the impact of these tariffs, articulated during the LAAD defense conference held in Rio de Janeiro.

In a recent development, Taurus has entered a memorandum of understanding to acquire Turkey’s Mertsav, with completion expected in the latter half of 2025. This acquisition aims to enhance Taurus’s product offerings significantly. Nuhs remarked on the company’s potential to uniquely provide a wide range of calibers from .22 to .50, and stated that the deal will expedite the production of .50 caliber machine guns.

Furthermore, Taurus is exploring opportunities in the Saudi Arabian market, with plans for a joint venture in collaboration with a local firm. A proposal has been submitted to Saudi authorities, and they are currently awaiting governmental assessment, as per Nuhs’s disclosure during the conference.

In summary, Taurus Armas is leveraging its U.S. production facilities to counter the effects of new tariffs, while also pursuing strategic international expansion through acquisitions and potential joint ventures. The anticipated acquisition of Mertsav is expected to diversify their product range, further strengthening their market position. Additionally, Taurus is exploring new avenues in Saudi Arabia, showcasing their intent to broaden their global footprint.

Original Source: www.tradingview.com

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