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Bucharest
September 21, 2020
BUSINESS

Romarm subsidiaries, black holes in the country’s defence industry, media

For over 20 years, an industrial activities that regularly generates profit in just about any other country around the world, the armament production, in Romania has been causing major damages to the national budget. According to Romania Libera daily, the National Company Romarm S.A. last year was put on the list of companies monitored by the International Monetary Fund and Government. A recent World Bank study reveals that, apart from other 200 state-owned companies and a Romarm subsidiary, the Bucharest Mechanical Plant is de facto bankrupt (only last year it reported a loss of almost EUR 2 M). Six of the Romarm subsidiaries – over a third that is – generate the biggest loss in the country’s defence industry, amounting to EUR 33 M every year. The standings open with UM Cugir and UM Sadu. To reduce the loss, following negotiations with the international institutions, Romarm was put on the list of companies to receive private management. Currently Romarm has a total of 16 subsidiaries (including an R&D institute) producing equipment for both civil and military use. The company now has a total of 5,400 employees, compared to 43,000 in 2000.

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