Romania mainly imports between 20% and 70% of defence industry components from the EU and the US

The share of imported parts used in the defence industry of Romania may vary between 20% and 70% being acquired from member states of the EU and third states, such as the US, said the ministry of economy, digitalization, entrepreneurship and tourism (MEDAT) in an answer to a request of Agerpres.'In order to strengthen operational capabilities and to align with international technological standards, significant investments have been made in recent years in the infrastructure of the national defence industry. These investments have focused on the modernisation of production facilities, the acquisition of advanced equipment, as well as the adaptation of manufacturing processes to the specific requirements of the Euro-Atlantic defence market. However, a considerable part of the components used in the manufacturing process of defence products are of foreign origin', the ministry points out.   Without giving any details referring to the naming of the economic operators or the specific nature of imported parts, MEDAT mentions that due to the level of industrial integration and the technological specific of each entity in the defence industry, the share of imported parts may vary between 20% and 70%.These parts are, mainly, acquired from EU member states and third states, such as the US.According to the quoted source, Romania imports parts destined to the defence sector mainly from authorized economic operators from states with tradition and advanced industrial capacity in the domain of defence, such as:France, Israel, the UK, Germany, Poland, Austria, Italy and the US.Imports are made in accordance with national and European regulations regarding the control of exports for products with double use and those sensible from a strategic point of view. MEDAT also emphasises that, at present, there are also economic operators in the national territory that have developed fully integrated production capacities, not resorting to the import of components, but only, on an ad hoc basis, to the purchase of raw materials or auxiliary materials from other EU Member States.   'In the event of a worsening of the international trade climate, the affected operators may analyse alternative solutions to redirect supply flows to other accredited suppliers in partner countries. Among the viable options are France, Germany, Poland, Israel, the United Kingdom and other EU Member States, which have industrial capacities compatible with the technological requirements of the national industry,' the Ministry of Economy said.   According to him, it is still necessary ‘to have in view that such reconfiguration of the supply chains could lead to cost increase, generated by the price differences, customs taxes and possible contract conditions imposed by new suppliers’.National Defence Industry Directorate of MEDAT, according to Government Decision no. 864/2023 on the organisation and functioning of the Ministry of Economy, Entrepreneurship and Tourism, has among its attributions: participation in the elaboration of strategies, programmes for the implementation of the Government Programme in the defence and security industry, regardless of the form of ownership of the economic operators; endorsement of the annual investment programme of economic operators with wholly and/or majority state capital; participation in the elaboration of proposals for the national economy mobilisation plan, industry section, annual plans for the preparation of the national economy and the territory for defence, the needs of raw materials and related materials, management/updating of the inventory of production capacities of economic operators in the Similarly, the Directorate takes part in commisions for the control of exports, imports and other operations with military products and products with double use coordinated by the ministry of foreign affairs through ANCEX and coordinates, represents and supports the activity of international technical cooperation in the domain of defence industry, in relation to other states, as well with the organisers in the UN, NATO and the EU.The Ministry of Economy oversees 25 companies in the defence industry, covering various fields from aviation and shipyards to arms production. The defence industry companies, according to data on the MEDAT website, are: Avioane Craiova SA, IAR SA, IOR SA, Romaero SA, santierul Naval Mangalia SA, Uzina Mecanica Orastie SA, CN Romarm SA, Tohan SA Zarnesti, Carfil SA Brasov, Uzina Mecanica Plopeni SA, Metrom SA Brasov, Uzina Mecanica Cugir SA, Uzina Mecanica Mija SA, Uzina Mecanica Sadu SA, Uzina Automecanica Moreni SA, Arsenal Resi?a SA, Uzina Mecanica Bucuresti SA, Uzina de Produse Speciale Dragomiresti SA, Fabrica de Pulberi SA Fagaras, Pirochim Victoria SA, Electromecanica Ploiesti SA, Fabrica de Arme Cugir SA, Uzina de Produse Speciale Fagaras SA, Construc?ii Aeronautice SA and Uzina Mecanica Dragasani SA.