romanian defense industry

8/13/2019 Romanian Defense Industry

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Description

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Product SynopsisThis report is the result of SDI's extensive market and companyresearch covering the Romanian defense industry, and providesdetailed analysis of both historic and forecast defense industry valuesincluding key growth stimulators, analysis of the leading companies in

the industry, and key news.
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Brief Summary


Product SynopsisThis report is the result of SDI's extensive market and companyresearch covering the Romanian defense industry, and providesdetailed analysis of both historic and forecast defense industry valuesincluding key growth stimulators, analysis of the leading companies in

the industry, and key news.

Introduction and LandscapeWhy was the report written?The Future of the Romanian Defense Industry - Market Attractiveness,Competitive Landscape and Forecasts to 2018 offers the reader aninsight into the market opportunities and entry strategies adopted byforeign original equipment manufacturers (OEMs) to gain a marketshare in the Romanian defense industry.


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What is the current market landscape and what is changing?Romanian defense expenditure increased at a CAGR of -6.59% duringthe review period and values US$1.7 billion in 2013. The focus of theRomanian government will be on modernization plans constituting theprocurement of more advanced military equipment with improved

technology; active participation in NATO (North Atlantic TreatyOrganization) along with joint operations with other countries;participation in peacekeeping missions; and participation in bordersecurity measures.

What are the key drivers behind recent market changes?Modernization of military equipment with improved technology; activeparticipation in NATO (North Atlantic Treaty Organization) along with

joint operations with other countries; participation in peacekeepingmissions; and participation in border security measures.


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What makes this report unique and essential to read?The Future of the Romanian Defense Industry - Market Attractiveness,Competitive Landscape and Forecasts to 2018 provides detailedanalysis of the current industry size and growth expectations from 2014to 2018, including highlights of key growth stimulators. It also

benchmarks the industry against key global markets and provides adetailed understanding of emerging opportunities in specific areas.

Key Features and BenefitsThe report provides detailed analysis of the current industry size and

growth expectations from 2014 to 2018, including highlights of keygrowth stimulators, and also benchmarks the industry against keyglobal markets and provides a detailed understanding of emergingopportunities in specific areas.


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The report includes trend analysis of imports and exports, together withtheir implications and impact on the Romanian defense industry.

The report covers five forces analysis to identify various power centersin the industry and how these are expected to develop in the future.

The report allows readers to identify possible ways to enter the market,together with detailed descriptions of how existing companies haveentered the market, including key contracts, alliances, and strategicinitiatives.

The report helps the reader to understand the competitive landscape ofthe defense industry in Romanian. It provides an overview of keydefense companies, both domestic and foreign, together with insightssuch as key alliances, strategic initiatives, and a brief financial analysis.


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Key Market IssuesThe Romanian economy went in to a deep recession in 2008

jeopardizing the growth it had witnessed in earlier years. Following theglobal financial crisis, EU and NATO countries decided to reduce theirmilitary spending. The crisis led European states to take measures

such as decommissioning 160,000 soldiers during 2009-2011, tomaintain effective armed forces in times of economic austerity. TheRomanian government also announced various unpopular austeritymeasures including public sector restructuring, spending cuts for theinterior and defense ministries, and expenditure cuts, including a 25%

cut in public wages and 15% drop in pension and social benefits in the2010 budget.

Eastern European countries, including Romania, have historicallyfeatured high levels of corruption.


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After gaining membership in the EU and NATO, Romania introducedimportant economic and legislative measures to attract foreign capital,and adopted legislation to reduce corruption, for example, legislationrequiring politicians to disclose information about their assets, a lawgoverning conflicts of interest for government officials, and a law

regulating the financing of political parties.

Key HighlightsMany international defense equipment manufacturers enter theRomanian market through acquisitions and alliances. The privatization

of the Romanian defense industry provides foreign OEMs with furtheropportunities to enter the market. Market entry through the acquisitionof a domestic company is a popular entry route into the Romaniandefense industry, and many companies have followed this route.


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Since 2005, Romania has been a member of the EDA. The agencypromotes arms co-operation and has created a common platform forthe promotion of the European defense equipment market. The EDAprovides an electronic bulletin board for government contracts andprovides an opportunity for suppliers across Europe to bid for defense

contracts advertised by subscribing member states. Defensecompanies from member nations are able to register and be the first tobe notified of a potential purchase request from other member nations.In the circumstance that a defense company from a member nationwishes to make defense procurement, they advertise their

requirements, ranging from technology to components, on the bulletinboard, providing registered suppliers with market opportunities.

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Romania imports the majority of its defense equipment from the US,Germany, Israel, and ltaly. The US held the highest share of the totalarms imports during 2008-2012 with 41.6%. The other three majorimport partners: Germany, Israel, and Italy collectively accounted for50% of Romania's total arms imports during the review period. The

remaining portion of imports is accounted for by Canada, Switzerland,France, Norway, and Spain.

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Table of Contents


1 Introduction

1.1. What is this Report About?

1.2. Definitions

1.3. Summary Methodology

1.4. SDI Terrorism Index

1.5. About Strategic Defence Intelligence

2 Executive Summary

3 Market Attractiveness and Emerging Opportunities

3.1. Defense Market Size Historical and Forecast

3.1.1. Romanian defense spend expected to register significant growth by 2018

3.1.2. Participation in peacekeeping missions, joint operations and border control measures will support

defense expenditure

3.1.3. Defense expenditure as a percentage of GDP projected to decline over the forecast period

3.1.4. Per capita defense spending forecast to grow over the forecast period


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3.2. Analysis of Defense Budget Allocation

3.2.1. Capital expenditure allocation expected to increase during the forecast period

3.2.2. Revenue expenditure accounts for majority of defense expenditure

3.2.3. Defense related expenditure to grow with positive CAGR during the forecast period

3.2.4. Expenditure on national security to register growth during the forecast period

3.3. Homeland Security Market Size and Forecast

3.3.1. Homeland security budget projected to grow steadily during the forecast period

3.3.2. Restructuring organizations and illegal immigration to drive homeland security budget

3.3.3. The nation is at someriskof terrorism

3.3.4. Romania has a terrorism index score of 0.1

3.4. Benchmarking with Key Global Markets

3.4.1. The country is expected to remain a small competitor in the international defense market

3.4.2. Romanian military expenditure is modest compared to countries with the largest defense

expenditure


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3.4.3. The country allocates a lower percentage of GDP towards defense than other NATO members

3.5. Market Opportunities: Key Trends and Growth Stimulators

3.5.1. Border Security:

3.5.2. Maritime Security:

3.5.3. Air Defense Missile Systems:

3.5.4. Airborne C2C4ISR:

3.5.5. Cyber Security:

4 Defense Procurement Market Dynamics

4.1. Import Market Dynamics

4.1.1. Lack of advanced technology drives imports

4.1.2. Defense imports registered a decline during 2008-2012

4.1.3. The US, Germany, Italy, and Israel account for the majority of the country's defense imports

4.1.4. Sensors account for majority of arms imports

4.2. Export Market Dynamics


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4.2.1. Defense exports anticipated to grow during the forecast period

4.2.2. Ships are the most exported defense goods

5 Industry Dynamics

5.1. Five Forces Analysis

5.1.1. Bargaining power of Supplier: Low to Medium

5.1.2. Bargaining power of Buyer: High

5.1.3. Barrier to entry: Medium

5.1.4. Intensity of rivalry: Medium to High

5.1.5. Threat of Substitution: Low to high

6 Market Entry Strategy

6.1. Market Regulation

6.1.1. Offset policy mandates suppliers invest a minimum of 80% of the contract value into the Romanian

economy

6.1.2. Romania allows 100% foreign direct investment in defense sector

6.2. Market Entry Route


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6.2.1. Foreign OEMs enter the market through acquisition of domestic defense companies

6.2.2. EDA promotes defense procurements within EU

6.3. Key Challenges

6.3.1. Defense budget cuts impede the growth of defense industry

6.3.2. Rampant corruption and inadequate legal infrastructure

6.3.3. Foreign competition hampers the domestic defense industry

7 Competitive Landscape and Strategic Insights

7.1. Competitive Landscape Overview

7.2. Key Domestic Companies

7.2.1. CN Romarm SA: overview

7.2.2. CN Romarm SA: products and services

7.2.3. CN Romarm SA: recent announcements and strategic initiatives

7.2.4. CN Romarm SA: alliances


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7.2.5. CN Romarm SA.: recent contract wins

7.2.6. S.C. Uzina Mecanica Cugir S.A: overview

7.2.7. S.C. UZINA MECANICA CUGIR S.A: products and services

7.2.8. S.C. Uzina Mecanica Cugir S.A: recent announcements and strategic initiatives

7.2.9. Aerostar S.A: overview

7.2.10. Aerostar S.A.: products and services

7.2.11. Aerostar S.A: recent announcements and strategic initiatives

7.2.12. Aerostar S.A: alliances

7.2.13. Aerostar S.A: recent contract wins

7.2.14. IAR S.A. Brasov: overview

7.2.15. IAR S.A. Brasov: products and services

7.2.16. IAR S.A. Brasov: recent announcements and strategic initiatives

7.2.17. IAR S.A. Brasov: recent contract wins

7.2.18. IAR S.A. Brasov: financial analysis


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7.2.19. Turbomecanica S.A.: overview

7.2.20. Turbomecanica S.A: products and services

7.2.21. Turbomecanica S.A.: recent announcements and strategic initiatives

7.2.22. Turbomecanica S.A.: financial analysis

7.2.23. Electromagnetica SA: overview

7.2.24. Electromagnetica SA: products and services

7.2.25. Electromagnetica SA: recent contracts and strategic initiatives

7.2.26. Avioane Craiova S.A: overview

7.2.27. Avioane Craiova S.A. (SAIC): products and services

7.2.28. Avioane Craiova S.A: recent contracts and strategic initiatives

7.2.29. Avioane Craiova S.A: alliances

7.2.30. Avioane Craiova S.A: recent contract wins

7.2.31. Elprof S.A: overview

7.2.32. Elprof S.A.: products and services


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7.2.33. Elprof S.A.: recent announcements and strategic initiatives

7.3. Domestic Private Companies

7.3.1. IOR S.A: overview

7.3.2. IOR S.A: products and services

7.3.3. IOR S.A: recent announcements and strategic initiatives

7.3.4. Simultec S.R.L: overview

7.3.5. Simultec S.R.L: products and services

7.3.6. Simultec S.R.L: recent contracts and strategic initiatives

7.3.7. Simultec S.R.L: Recent Contract Wins

7.3.8. Intelcan Technosystems: overview

7.3.9. Intelcan Technosystems, Inc: products and services

7.3.10. Intelcan Technosystems, Inc.: recent announcements and strategic initiatives

7.3.11. Intelcan Technosystems Inc: recent contracts

7.3.12. S.C. Eurocopter Romania SA: overview


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7.3.13. S.C Eurocopter Romania SA: products and services

7.3.14. S.C Eurocopter Romania SA: recent announcements and strategic initiatives

7.3.15. S.C Eurocopter Romania SA: Recent Contract Wins

8 Business Environment and Country Risk

8.1. Demographics and Social Statistics

8.1.1. Total Rural Population

8.1.2. Total Urban Population

8.1.3. Overall Life Expectancy

8.1.4. Number of households

8.2. Economic Performance

8.2.1. GDP Per Capita

8.2.2. GDP, Current Prices

8.2.4. Consumer Price Index

8.2.5. Wholesale Price Index


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8.2.6. Local Currency Unit per USD

8.2.7. Lending Rate

8.2.8. Real Interest Rate

8.2.9. Market Capitalization of Listed Companies

8.2.10. Market Capitalization of Listed Companies (% of GDP)

8.2.11. Government Cash Surplus/Deficit

8.2.12. Government Cash Surplus/Deficit as % of GDP

8.2.13. Goods exports as % of GDP

8.2.14. Goods Trade Surplus/Deficit as % of GDP

8.2.16. Service Imports as % of GDP

8.2.17. Service Exports as % of GDP

8.2.18. Foreign Direct Investment

8.2.19. Net foreign direct investment as % of GDP

8.2.20. International reserves, including gold


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8.3. Energy and Utilities

8.3.1. Conventional Thermal Electricity Net Generation

8.3.2. Hydroelectricity Net Generation

8.3.4. Nuclear Electricity Net Generation

8.3.6. Conventional Thermal Electricity Installed Capacity

8.3.7. Electricity Imports

8.3.8. Electricity Exports

8.3.9. Proved Natural Gas Reserves

8.3.10. Petroleum Consumption

8.3.11. Crude Oil Proved Reserves

8.4. Infrastructure

8.4.1. Rail Lines

8.4.2. Air transport, freight

8.4.3. Overall Construction


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8.5. Minerals

8.5.1. Mining, Manufacturing, Utilities Output

8.6. Technology

8.6.1. Research and Development Expenditure

8.7. Telecommunication

8.7.1. Telephone Lines

8.7.2. Telephone Lines Penetration Rate

8.7.3. Mobile Cellular Subscriptions

8.7.4. Mobile Cellular Subscriptions Penetration Rate

9 Appendix

9.1. About SDI

9.2. Disclaimer


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Industry---Market-Attractiveness,-Competitive-Landscape-and-Forecasts-to-2018/
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