On Wednesday, 14 December, Romania’s economy minister stated that the country plans to rebuild its defense industry and invest more in technology to boost output and exports. This was due to the fact that this sector has seen its turnover rise during the conflict in Ukraine.
The state-owned ROMARM controls 15 ammunition and weapons companies. This includes armoured transporters, gunpowder and infantry shells.
ROMARM’s turnover increased six times in nine months after Russia invaded Ukraine. Minister Florin Spataru said that this is in addition to the 131.6 million lei it earned in 2021, which was a record. He said that exports accounted for the bulk of the increase.
The company’s outdated technology and high energy costs make it difficult for them to keep pace with private defense companies.
Spataru stated in an interview that low energy prices and weak technology had resulted in a lower production than we anticipated.
To solve the problem of competitivness, we need to invest in new technologies. We aim to increase production to satisfy the needs of relevant ministries, but we also consider exports to meet regional demand.
Eastern Europe’s arm sector has increased production as governments from the region support Ukraine in its fight against Russia.
Romania shares a border with Ukraine of 650km (405 miles). It has not yet commented on the military aid it provides. NATO Secretary General Jens Stoltenberg stated in November that the assistance was “significant”.
Romania, a NATO member country since 2004, will increase its defense spending from 2% to 2.5% next fiscal year.
Spataru said that state defense companies were currently purchasing new production lines for 600m lei and 200m lei for next year.
In 2023, Electromecanica Ploiesti plans to launch a three year investment program to build SkyCeptor missile interceptors in cooperation with U.S. Raytheon. Spataru said that the first missiles will be delivered in 2026.
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