Polish privatisation program appears to be underway

Published: 6/8/1999

After much debate, the programme to restructure Poland"s defence industry could soon get off the ground. The programme, which was initially adopted in February 1999, envisions the privatisation of most of Poland"s 34 defence industry plants. The first six could include the PSO Maskpol plant (maker of personal protective gear), the PCO optical equipment plant, WSK PZL Rzeszow (aircraft engines), WSK PZL Warszawa II (aircraft instruments) ZM Bumar Labedy (battle tanks) and ZM PSL Wola (diesel engines for tanks and APCs). However, the Polish parliament first has to pass two bills: one involving the restructuring of the industry; the other concerning the principles for offsetting transactions involving defence equipment. As yet, the ministries concerned have not produced the relevant drafts. Under the offset programme, each major contract for the purchase of foreign weapons must be matched by the seller placing equivalent orders with Polish industries. This is exemplified by the recent discussions with various manufacturers over the future of the WZL Swidnik helicopter plant. The offset may also be in the form of investments, transfer of technology or access to export markets.

Article ID: 562