"Very radical" restructuring program envisages defense industry division

Under initial proposals adopted by the Economy Ministry for the restructuring and consolidation of the defense industry, two centers are to be set up, one supervised by the Industrial Development Agency (ARP) and the other by foreign trade company PHZ Bumar. The ARP will take control of plants involved in the electronic warfare, aviation and small arms fields, while Bumar will oversee armor, ammunition and missile production. Also as part of the restructuring, 12 repair and production companies and 10 research and development centers will be commercialized. President of the ARP Arkadiusz Krezel commented, "The consolidation process will be preceded by the complete overhaul of the companies. The program is very radical." Currently the State Treasury controls 38 defense companies with assets of zl.4.7 billion and a combined workforce of 45,500. Government orders, which are essential for the industry's survival, are continuing to drop. (Puls Biznesu, p. 3) M.T.