Romania’s defense industry increased its turnover by 13% year-on-year in the first half of the year, to RON 309 million (some EUR 70 million), according to a Ministry of Economy statement. The exports also registered a higher value in this period, of RON 284 million (around EUR 64 million), up 31.7% compared to the same period the previous year.

Uzina Mecanica Sadu (65%), Fabrica de Arme Cugir (60%), IAR (52%), ROMARM National Company (47%), and Fabrica de Pulberi Fagaras (32%) registered the largest increases in turnover in the first half of 2015. In terms of exports, the largest increases were registered by Avioane Craiova (86.5%), ROMARM National Company (39.31%), IOR (28.27%), and IAR (17.45%).

In the first half of 2015, the Romanian companies active in the defense sector contracted orders for ammunition and arms worth about USD 215 million, ensuring their production by 2019. Some of these companies, such as Uzina Mecanica Cugir, Fabrica de Arme Cugir, and Uzina Mecanica Mija, are to reach maximum capacity of production.

According to the Romanian Ministry of Economy, the value of contracts signed in the first part of 2015 is almost equal to the aggregate value of exports in the last three years.

However, the companies active in the defense industry still face problems related to the existence of historical arrears, outdated technologies, and the existence of assets that are no longer linked to production.

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Irina Popescu, irina.popescu@romania-insider.com