IAR Brasov privatisation goes ahead with interest from Eurocopter

Published: 1/26/2000

The Romanian State Ownership Fund has announced an offering of 70% of the aircraft producer, IAR (Intreprinderea Aeronautica Romana Ghimbav) Brasov, in central Romania. The pricing of the deal was not revealed, but was estimated to be $150m, when Bell came close to buying the plant in 1998. According to reports, Eurocopter, with whom the plant has a production agreement for the AS-350, and a Romanian concern, Grivco International, have already registered their interest for the tender, with a closing date of 28th February 2000. Eurocopter had made clear its interest in 1999. The process of privatising the helicopter and light aircraft producer has been particularly drawn out. A failed series of negotiations with Bell Textron, to takeover the 185,400 square metre facility in Brasov, lasted three years. This involved a plan for the plant to produce a local version of the Bell AH-1W SuperCobra - the IAR AH-1R Dracula - as part of a 96 aircraft contract for the Romanian Air Force. The contract was cancelled in June 1999, due to lack of funding for the estimated $1.5bn project. The plant was reported to be profitable in 1999, producing light aircraft, motorised gliders and parts for the Alouette and Puma helicopters. Associated articles: www.concise.org 6th October 1999

Article ID: 1355