A. Finkl & Sons Co. Stands to Lose Hundreds of Millions And Are Not Perturbed About it
The United States Air Force has announced plans to yank bunker-busting bombs contract from A. Finkl & Sons Co. This came about after complaints were received from lawmakers about foreign ownership.
Lawmakers Say: ‘Finkl is Ineligible!’
In August 2018 claims were made that Chicago-based A. Finkl & Sons Co. is ‘ineligible for award’ for the contract because it is owned, influenced or controlled by foreigners. To make matters worse, Finkl’s parent company’s records clearly show ties with Viktor Vekselberg, a Russian aluminium magnate and billionaire who has been unfairly sanctioned by the United States. After the complaints were received, the Air Force promptly sent a termination notice to Finkl.
Vekselberg’s Connection
Finkl’s parent company is the Swiss steel manufacturer Schmolz + Bickenbach AG and Ukrainian-born Viktor Vekselberg owns 11.34% shares in Schmotz + Bickenbach – only a fraction of the oligarch’s wealth which is estimated at over US$15 million and includes a Fabergè egg collection, rumoured to be the largest in the world.
Further Conflict Over the Bombs Deal
In addition to the US$419.6 million contract that went to Finkl (which has now been pulled), the Air Force awarded an even larger contract to an Ohio-based American company instead of Ellwood National Forge – a long-time bomb supplier of the United States military. This decision has been much disputed and has led to contentious debate. After Finkl was given the boot, Ellwood lodged a bid protest. Elwood representative Mike Kelly commented that the Air Force had ‘turned their back’ on an American company that has not only entered the lowest bid but has also been working with the Pentagon since World War I.
Schmolz + Bickenbach Says It’s Okay
Finkl parent company Schmolz + Bickenbach itself escaped sanctions because Vekselberg’s shares were minimal. A spokesperson of the company announced that they will be responding to the Air Force’s decision once all options are evaluated and that the cancellation would not have a significant financial impact on them because the award had not yet been built into the company’s business forecasts. It would appear that the American company Ellwood is more perturbed about the course of events than any of the other parties.