Bumar shoots from the hip

Roman Baczyński, president of Bumar, was in ebullient form last week as his company celebrated 35 years in business.

Baczyński took the opportunity to reflect on his company's operations, and laid out ambitious plans for Bumar's and the industry's future. The Bumar boss says Poland should bet on the development of its arms industry and create one group that would sell weapons. "We should concentrate on research and development if we want to catch up with the world. [We want to] set up a central research and development center for the arms industry. We have to do it now," he said.

This was the first year that the company financed its investment from its own resources, rather than loans. Bumar is replacing old technologies with new solutions, examining its logistics process, and focusing on controlling the firm's operations online.

The company has cast its net wide over the last 35 years and is on the verge of signing a number of deals including: the acquisition of Arsenal, an ammunition company in the Philippines; four new contracts to deliver anti-aircraft systems to Indonesia worth $40 (zł.124) million each; and contracts in India to deliver 300 howitzers. It is also planning to open an agency in Iraq and a regional center in Chile for the South American region. It is no coincidence that the Minister of Defense, Radek Sikorski, visited the Philippines last week.

Baczyński said it has been a rollercoaster ride over the last 35 years. "We began with a turnover of zł.320 million, in 2006 our plans, which I believe will be exceeded, estimated it at zł.3.5 billion. It is a great success within a short time," said Baczyński. Bumar's current portfolio is worth $1.5 (zł.4.7) billion and the projects will be completed in 2007 and 2008. The value of its exports vary from 43 to 45 percent of its output. In 2005 its net profit reached zł.13 million. The company's profit margin is set at six percent, and in some cases two or three percent.