Constantin Bucuroiu: "We need a financing of 250 million euros in the defense industry"

The defense industry in our country urgently needs a financing of 250 million euros to retechnology and modernize, claims Constantin Bucuroiu, the president of the Alliance of Trade Unions in the Defense and Aeronautical Industry (ASIAA).

Constantin Bucuroiu told us: "In order to ensure the necessary production, we must invest in modern manufacturing lines, which will lead to a qualitative leap regarding the achievements of each company. In order to make that leap, however, we need urgent financing of at least 250 million euros, to get to where we need to be with all the companies in the defense industry, that is, in a technological situation that will allow us to quickly enter the European mixer production of ammunition and armaments. That amount also includes the expenses that the companies should make regarding the professional training of the employees, and part of the money should also be allocated to the research and development area, because the technique changes daily and the products become more efficient from a day to day. However, in order to keep up with the Western partners, it is necessary that periodically the initial amount of 250 million euros be revised and supplemented documented in certain directions of action".

The union leader stated that at the moment there are companies that are working very well, being profitable, such as the state companies Carfil Braşov, UPS Dragomireşti, Uzina Mecanică Mija, Avioane Craiova, Uzina Mecanică Cugir, IAR Ghimbav, but also the private company Aerostar Bacau. He mentioned that the war in Ukraine is a major opportunity for the defense industry by creating many connections between European companies active in this field, connections in which the companies listed above were also attracted and are much better off in terms of turnover and income recorded two years ago.

• Automecanica Moreni - modernized, but with financial losses

The president of ASIAA also spoke to us about companies with problems in the defense industry, problems caused in his opinion by the way in which managers of state-owned companies in this field have been appointed for short periods of time.

Constantin Bucuroiu specified: "Uzina Automecanica Moreni ranks it among the companies that are suffering at the moment. The plant currently operates with 300 employees, it currently produces maintenance for the vehicles sent by the Ministry of National Defense, a contract that covers only 30-40% of the financing requirement. Automecanica Moreni still has civilian production that covers only 15-20% of what is needed, but remains uncovered with 40% of the production intended to bring the necessary funds to the company's budget. Let's not forget that Automecanica Moreni also has some rather large historical debts. If we take into account that we do not have 40% of production covered, we are practically at a loss, and the future of the plant is bleak".

A solution to save the plant could be a partnership with Rheinmetall Automecanica Mediaş, whose representatives would have stated, according to Constantin Bucuroiu, that they would like some of the components of the products manufactured in Mediaş on future programs to be made in Moreni.

The union leader said: "But in order for the factory to operate at optimal parameters, we have to make new products, because maintenance covers very little of the annual financing needs of the company's activity. And the factory has benefited in recent years from the Ministry of Economy of 40 million lei in financing for investments that were used for the complete rehabilitation of the halls, production lines, but also for the purchase of machinery, installations and other necessary equipment. That's why the company is attractive for partners who want to enter into a joint venture or any other form of association".

• Serious problems at the ammunition factory in Sadu

Constantin Bucuroiu also told us that Uzina Mecanică Sadu is among the companies with problems, where at the moment 660 employees are in a position to go home, to be laid off.

The president of ASIAA pointed out: "Let's not forget that we are talking about an ammunition factory, which is suffering, although the demand for ammunition at the European level is very high and cannot be covered. In addition to Sadu, there are also problems at the Metrom company, which can be closed at any time, although only that factory could meet the requirements for NATO ammunition, but also the Cugir Arms Factory, which is going through a very difficult time. The exclusivity she had on her product is costing her a lot at the moment, especially since the weapons factory only made 40% of her share. The Cugir arms factory has 880 employees. Perhaps a solution to save this factory would be its unification with Uzina Mecanică Cugir - the ammunition factory, which has a surplus of orders, but is facing a shortage of personnel".

He said that the weapons factory must complete the project on the assault weapon to NATO standards that was tested by the Ministry of National Defense, whose experts formulated some observations, which should lead to the improvement of the model proposed by Cugir.

The union leader also said that, unfortunately, the armaments companies do not react very quickly and are not prepared to quickly resolve the MApN's demands, especially when the managements of the state-owned companies are still not stable, not being recruited on the basis of the corporate governance law.