WARSAW – The Romanian government has unveiled plans to secure minority private investors for the country’s state-run defense industry with emphasis on plant modernization.
Bucharest aims to maintain a share of at least 50 percent in the manufacturers, and secure investors who will provide the necessary technology and know-how to upgrade the plants' production capabilities, the government said in a draft bill obtained by local news site Digi24.ro.
The defense companies include Tohan Zarnest, Carfil, Metrom, Uzina Mecanica Cugir, Fabrica de Arme Cugir, Uzina Mecanica Plopeni, Uzina Mecanica Sadu, Uzina Mecanica Mija, Uzina Automecanica Moreno, Arsenal-Resita, Uzina Mecanica Bucuresti, Electromecanica Ploiesti, Uzina de Produse Speciale Dragomiresti, Pirochim Victoria, and Fabricii de Pulberi Fagaras.
The facilities' fields of specialization include armored vehicles, tracked vehicles, personal weapons, munitions, explosives and propellants, according to data from the firms.
Earlier this year, the government canceled some 1.1 billion lei (US $309 million) in fiscal obligations previously imposed on the companies, hoping to improve their financial performance.
According to the draft bill, the Romanian companies will maintain their main fields of activity, production capacity and range of services for at least five years following the potential transactions. ■
Email: jadamowski@defensenews.com.
