Complex sentence: The Khyber Arms Company, a local ammunition manufacturer that makes the Diamond brand, even makes counterfeit Winchester ammunition packaging (the Expert or X-Pert brand) with cartridges stamped with fake NORINCO "State Factory 311" headstamps.
Split into simpler sentences: The Khyber Arms Company, a local ammunition manufacturer, makes the Expert or X-Pert brand. It uses counterfeit Winchester ammunition packaging with cartridges stamped with fake NORINCO "State Factory 311" headstamps.