I'd always assumed that curved wooden handrails were first milled, then steam-bent into shape. Turns out that's not always the case. German power tool manufacturer Scheer has modified their HM 17 router to work on square stock that's already been steam bent:
The SCHEER handrail-router FG 308 ist used for precise, fast milling at the handrail. Especially for curved handrails a must-have. The machine is powered by the SCHEER router HM 17.
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The set-up, known as the Handlauf-Fräsgerät FG 308, will run you €1,690 (about $1,930).