Both Captured and “Surrendered” (at War’s End) MG07/12 were utilised by the Italian Forces in many ways. Whilst the majority were sent to AOI (Eastern Africa (Eritrea, Somalia and eventually Ethiopia,) along with the majority of the M95 rifles, for use by the native troops under Italian Command, a large number were also used as “Fortress Guns” in the Alpine Forts in the North West and North East Borders of Italy; and quite a number were used by the Royal Army in North Africa (AWM photos of Aussie captured Schwarzloses at Bardia (1941)).
Ammo was made by (as mentioned) SMI, BPD, Bologna, Possibly Martignoni, and by Hirtenberger (the “M.8 1937” cases.)
Cartridge clips were made by “LP” (“la Precisa”, a Radio manufacturer outside of Naples in the 1930s, which also made several ordnance related products (.22 RF Blanks, etc)…See the other thread on Mannlicher Clip markings here.
The 8x50R cartridge remained in Italian Service up to the Surrender of Italian Troops in North Africa(1943), and by isolated instances right up to April 1945, during the Civil War.
Quite a history for a cartridge that was Italy’s main opponent in the Great War
Regards, Doc AV