Kaczmarek's consolidation proposals win backing from military industry

Plans revealed recently by Treasury Minister Wieslaw Kaczmarek to consolidat e military production have been applauded by industry insiders. The minister would like to create four holding companies, one responsible for ammunition and rocket production, another for manufacturing heavy armor, the third for producing electronic warfare equipment, and the fourth for equipping the air force. Consolidation is being forced on the industry by the lack of privatiz ation potential for the majority of plants, resulting from their poor financ ial standing. Slawomir Kulakowski, president of the Polish Chamber of Milita ry Hardware Producers (PIPROK), said, "Consolidation is the only way to resc ue the sector. It will improve the competitiveness of Polish manufacturers, and in theory they could be sold for more money." Experts suggest that the I ndustrial Development Agency (ARP), which is already responsible for a numbe r of military production companies, could be at the heart of the consolidati on process. (Puls Biznesu, p. 7) P.W.