Treasury to net zl. 100 million in arms industry privatization

The State Treasury estimates that privatization of some arms industry companies will fetch zl.100 million next year, and selection of advisers for privatization of the first five arms-industry firms is slated for the end of 2000. "We will sign deals with advisers by the end of December," said deputy Treasury Minister Aldona Kamela-Sowinska. Another nine companies are in the pre-privatization stage. Among the first to be privatized, talks have advanced furthest in the sale of a stake in the FLT Krasnik ball-bearings plant. "Negotiations are being held with American and Japanese investors to sell up to 80% of the company," said the deputy minister. In the case of two companies the ministry left unnamed and steel mill Huta Stalowa Wola, the Treasury plans to raise their base capital by transfer of state-owned shares. There are 31 arms companies in Poland employing some 66,500 workers. The sector's total net loss was zl.149.9 million in 1999. "The financial standing of all companies [in the arms sector] is poor," Sowinska said. (Puls Biznesu, p.11)