Arms industry transformation and integration

• Preface
• p. ix

• Acknowledgements
• p. xi

• Abbreviations
• p. xiii

• 1
• Introduction
• p. 1

• I
• Post-cold war East Central Europe
• p. 1

• II
• The importance of the topic
• p. 3

• III
• Methodology
• p. 6

• 2
• The post-cold war evolution of the arms industry
• p. 9

• I
• Drivers of the transformation of the arms industry
• p. 9

• II
• The new structure of the arms industry
• p. 15

• III
• The arms industries of East Central Europe: crisis and partial recovery
• p. 33

• Table 2.1
• Number of people employed in arms production in 1986 and 2000
• p. 34

• 3
• Poland: a qualified success story
• p. 38

• I
• Arms industry policy in the 1990s: protection
• p. 40

• II
• Arms industry policy in the 2000s: promotion
• p. 48

• III
• The arms industry
• p. 64

• IV
• Military expenditure and procurement policy
• p. 79

• V
• Recent developments
• p. 91

• VI
• Conclusions
• p. 98

• Box 3.1
• The two Polish capital groups, 2002
• p. 52

• Box 3.2
• Major state-owned Polish arms companies, 2012
• p. 68

• Table 3.1
• Basic data on the Polish arms industry, selected years 1988-2011
• p. 42

• Table 3.2
• Major arms producers in Poland, 1991 and 1993
• p. 44

• Table 3.3
• Major foreign acquisitions of Polish defence enterprises as of 2010
• p. 70

• Table 3.4
• Main Polish offsets deals, as of December 2009
• p. 86

• Appendix 3A
• Polish company case studies
• p. 99

• I
• Bumar's rise from a domestic company to a potential regional giant
• p. 99

• II
• ARP: an indigenous engine of development
• p. 104

• III
• PZL-Swidnik: succcess via international cooperation
• p. 107

• IV
• PZL-Mielec: a regional company that became an international player
• p. 111

• V
• The Euro-Park Mielec special economic zone and the Aviation Valley
• p. 114

• VI
• The F-16 deal
• p. 116

• VII
• ZM Mesko: profitable use of offset deals
• p. 121

• VIII
• ZM Tarnow: a typical Polish company
• p. 123

• 4
• Hungary: the twists and turns of transformation
• p. 126

• I
• Arms industry policy: liberalism with elements of protectionism
• p. 131

• II
• The arms industry
• p. 139

• III
• Military expenditure and procurement policy
• p. 157

• IV
• Recent developments 165 V. Conclusions
• p. 169

• Table 4.1
• Basic data on the Hungarian arms industry, selected years 1988-2011
• p. 144

• Table 4.2
• The trajectory of the main Hungarian arms manufacturers
• p. 148

• Table 4.3
• Major Hungarian arms companies, 2012
• p. 152

• Table 4.4
• Main Hungarian offset deals, as of July 2007
• p. 164

• Appendix 4A
• Hungarian company case studies
• p. 171

• I
• Fegyver- és Gázkészüékgyár Ltd: coping without the state
• p. 171

• II
• Rába Jármuipari Holding NyRt: a winner
• p. 172

• III
• Dunai Repülogépgyár Rt: the history in a nutshell
• p. 174

• IV
• MFS 2000 Ltd: a typical Hungarian company
• p. 177

• V
• HM Currus Gödölloi Harcjármutechnikai Rt: an MOD company
• p. 180

• VI
• Pro Patria Electronics: an amphibian-like company in a turbulent environment
• p. 182

• VII
• The new Hungarian aviation industry
• p. 183

• 5
• A comparison of Poland and Hungary
• p. 186

• I
• The size and the state of the economy and the arms industry
• p. 186

• II
• The arms industry's place in the economy
• p. 187

• III
• Defence industrial policy
• p. 189

• IV
• The Warsaw Pact heritage
• p. 190

• V
• The arms industry's links with national armed forces and participation in foreign operations
• p. 191

• VI
• Foreign ownership and partnerships
• p. 192

• VII
• Conclusions
• p. 193

• Appendix 3A
• Comparing a Polish and a Hungarian company
• p. 194

• I
• Osrodek Badawczo-Rozwojowy Sprzetu Mechanicznego Sp. z o.o.
• p. 194

• II
• Gamma Muszaki ZRt
• p. 195

• 6
• The Czech Republic: bright promises and sober reality
• p. 198

• I
• Defence industrial policy: from conversion to selective promotion
• p. 200

• II
• The arms industry
• p. 205

• III
• Military expenditure and procurement
• p. 218

• Appendix 6A
• Czech company case studies
• p. 228

• I
• Aero Vodochody: out of the zone of turbulence
• p. 228

• II
• The VERA surveillance system: endogenous research and development
• p. 233

• III
• Tatra: success via foreign ownership
• p. 236

• IV
• The Sellier & Bellot ammunition company: a typical Czech company
• p. 237

• 7
• Slovakia: from a nationalist backwater to a Slavic tiger
• p. 240

• I
• Defence industrial policy
• p. 241

• II
• The arms industry
• p. 248

• III
• Military procurement and exports
• p. 255

• Appendix 7A
• Slovak company case studies
• p. 261

• I
• The spectacular conversion of the Slovak military triangle
• p. 261

• II
• ZTS-¿pecial and ZTS-Metalurgia: dealing with the legacy of the Warsaw Pact
• p. 263

• III
• Way Industry: a successful conversion
• p. 265

• IV
• ZVS Holding: atypical Slovak company
• p. 267

• 8
• Bulgaria: the challenge of catching up
• p. 269

• I
• A stop-go defence industrial policy
• p. 272

• II
• The arms industry
• p. 279

• III
• Procurement
• p. 288

• Appendix 8A
• Bulgarian company case studies
• p. 295

• I
• The Terem group: a difficult privatization
• p. 295

• II
• Arcus: successful privatization via management-employee buyout
• p. 297

• III
• Arsenal: a typical Bulgarian company
• p. 298

• IV
• Vazov Engineering Works: a difficult transformation
• p. 300

• V
• Electron Progress: success on civil and military markets
• p. 302

• 9
• Romania: high ambitions, harsh realities and pragmatism
• p. 305

• I
• Defence industrial policy
• p. 308

• II
• The arms industry
• p. 317

• III
• Military procurement
• p. 324

• IV
• Exports
• p. 330

• V
• Poland and Romania: a comparison
• p. 333

• Appendix 9A
• Romanian company case studies
• p. 335

• I
• Romarm: a difficult transformation
• p. 335

• II
• Cugir: a typical Romanian company
• p. 337

• III
• The Romanian aviation industry
• p. 340

• 10
• The new arms industry in East Central Europe
• p. 346

• I
• Key factors affecting the choice of a new defence industrial model
• p. 246

• II
• Defence industrial adjustment models
• p. 350

• III
• The outcome of defence industrial transformations
• p. 353

• IV
• The revitalized arms industry in East Central Europe
• p. 355

• V
• The arms industry and politics
• p. 360

• VI
• Changes at the company level
• p. 364

• Table 10.1
• Defence industrial adjustment models in East Central Europe
• p. 350

• 11
• The impact of EU and NATO membership
• p. 371

• I
• The rush towards EU and NATO membership
• p. 371

• II
• East Central Europe and membership of NATO
• p. 375

• III
• EU membership
• p. 381

• IV
• Striking a balance between the EU and NATO
• p. 387

• V
• Future prospects
• p. 389

• 12
• Conclusions
• p. 395

• I
• The arms industry in East Central Europe today: its nature and status
• p. 395

• II
• The East Central European defence industry in the global production and trade of weapons
• p. 398

• III
• General lessons and insights from East Central Europe
• p. 406

• Index
• p. 414