State of Bulgaria’s army industry improves

Author:
Photo: Anastasia Bakalska

It became clear over the past week that the state-owned companies within the Bulgarian army industry had been improving their results. The Capital Daily accentuated that it was due mainly to military conflicts within regions which are main markets of Bulgaria’s special production firms. The private companies in the sectors still haven’t published their financial audits for 2016 and the beginning of 2017, but the newspaper assumes that their results will be similar, since they are influenced by the same factors. The largest state-owned company within the military industry – VMZ Sopot used to be on the verge of bankruptcy until a few years ago, while in 2016 it raised its revenues four times. The company also hired over 1,000 new workers and judging by the triple increase in its expenses on materials obviously the workload grew in a significant manner. VMZ’s major markets are the Middle East, India, North Africa, the former socialist countries and the former Soviet republics. The Kintex state company has been returning its good positions in India, increasing its export to Algeria and maintaining its key positions in Ethiopia. Its incomes over the first trimester of 2017 were higher than over the entire 2016, due to some delayed payments received. The NITI Kazanlak producer of police and army equipment has also scored a significant growth in its revenues over 2016 and 2017. In relation with these results its competition with the private Arsenal has boosted, Capital writes. The salaries went higher and more manpower was hired. This information coincided with some meaningful statements of members of the new government. Commenting the intentions of the latter to stop the privatization in Bulgaria, Finance Minister Vladislav Goranov assured that the government would manage the state-owned companies of the army industry much better and for higher results. Vice Premier Tomislav Donchev added that any chances for additional development of the defense industry would be used. /Printed media resume./
English version: Zhivko Stanchev

More from category

Bulgaria among EU countries with highest consumption of electricity from renewables

Bulgaria has already exceeded the EU targets for production and consumption of electricity from renewable sources. Now normalization of electricity prices is in the offing. Eurostat announced recently that Bulgaria had not only reached,..

published on 2/12/18 1:09 PM

Workforce scarcity puts Bulgaria in need of hiring foreign shepherds

Bulgaria's economy is on the rise and it should continue this way for at least two more years, according to international analysts. There is, however, a requirement to be met–the current lack of workforce must be overcome. If this shortage did..

published on 2/7/18 1:02 PM

Bulgaria’s business elite ages

A survey of the Bulgarian Industrial Association (BIA) suggests that the business elite in Bulgaria has been ageing. Rapid technological development has opened a gap between older and younger generations of managers. „This gap may turn into a..

published on 2/3/18 11:00 AM