Arms industry needs new orders to get out of debt

The financial situation of Polish arms manufacturers is so dire that if the government does not provide a lifeline in the form of new orders, some of them will go bust next year. This is quite possible if the six-year rearmament plan, to be approved by the Cabinet on Dec. 14, is not a breakthrough in terms of new orders, says Slawomir Kulakowski from the Polish Arms Manufacturers Chamber (PIPRO). He also named privatization as a cure for the ailments of the arms sector. In 1995 Polish arms companies recorded a net profit of zl.91.4 million on zl.2.9 billion in revenues. In 1999 their turnover reached only zl.2.4 billion and losses totaled zl.149.9 million. After three quarters of this year, companies from the sector have together already lost zl.190 million, while their debts exceed zl.2 billion. (Puls Biznesu, p.