FÉG stands for Fegyver És Gépgyár, which could be translated as "Arms and Machine Factory". It comes from the Hungarian "Fegyver- és Gépgyártó Részvénytársaság" ("Arms and Machine Manufacturing Company"). Founded on February 24, 1891 in Budapest and renamed to Fémárú, Fegyver- és Gépgyár (Metalware, Arms and Machines F.) in 1935, it is now known as the FÉGARMY Arms Factory Ltd. (FÉGARMY Fegyvergyártó Kft.). Between 1946–1965 it was called Lamp Factory (Lámpagyár) (Lampart), and from 1965 through decades as Fegyver- és Gázkészülékgyár (Arms and Gas equipment F.), manufacturing most of the propane water boilers and heaters found in Hungarian panel houses.
Through its history it always fulfilled a crucial role in supplying the Honvédség with small arms, this company also manufactured and exported a variety of semi-automatic pistols and rifles, including the P9R (a copy of the famous Browning Hi-Power) and the FEG PA-63 (a Walther PP/PPK clone in 9x18mm Makarov), but currently only self-loading pistols (P9L, P9M, P9R, etc.) and break-barrel air rifles (LG 427, LG 527). In Hungary the company is also famous for its starting pistols, for example the GRP-9.
After 2004 many of its traditional export markets were put under embargo and this caused the company to finally go bankrupt.