Treasury begins privatization of arms-industry

The Treasury Ministry has begun privatization of 10 of 31 defense sector companies and will sell another 14 shortly. However, sector representatives say that the firms to change hands will first have to be capitalized or consolidated. The Ministry has already finished the pre-privatization analysis for Fabryka Lozysk Tocznych Krasnik and has invited potential investors to negotiate the deal. It also has similar documents concerning PZL Warszawa-Okecie and is looking forward to information concerning WSK PZL- Rzeszow, WSK PZL Swidnik, Belma, Stomil, Radmor, Unimor and Radwar. The tender for the next 14 companies scheduled for privatization will be held late this year. Among them are Huta Stalowa Wola steel mill, Nitron, Progaz, PZL Kalisz and Bumar -Labedy. According to Boguslaw Kulakowski, the president of the Polish Chamber of Arms Industries, investors will be attracted only by those companies likely to secure army procurements. So far there are none. In the first quarter of the year the overall revenue from the sale of 25 privatized companies was zl 547.6 million and the number of companies with net profits increased from seven to one.(Puls Biznesu, p.3)