PATROMIL

1
PATROMIL partner or competitor in the major
acquisition program of the Romanian MoD ?
2
Highlights

• PATROMIL the Association
• represents the interests of over 200 Romanian
  producers, specialized in military technique
  production of goods, parts and technologies.
• its affiliate members military production is set
  up to the NATO requirements, and both civil and
  military products are made according to ISO-9001
  quality standards.
• represents the Romanian military manufacturers in
  domestic (government, trade unions) and
  international relationships (with similar
  associations around the world).

3
Highlights

• PATROMIL the Association
• ensures the handling of foreign commercial
  proposals to the affiliated Romanian companies,
  according to their profiles.
• ensures - every year - the management of the
  international fairs and exhibitions participation
  proposals for the interested companies.
• organises - every 2 years - together with ROMEXPO
  S.A. and other companies, the international
  exhibition of military technique EXPOMIL in
  Bucharest.
• cooperates with The Romanian Foreign Trade Center
  for the domestic and international distribution
  of the "Romania - The Defense Industry" catalogue
  - updated every 2 years, mainly for the
  information regarding the companies represented
  in it.

4
Main events

• PATROMIL
• 2003 Signing the Memorandum of Collaboration
  with
• DMA (United Kingdom)
• 2004 Signing the Memorandum of Collaboration
  with
• DMA (Poland)
• 2006 Adhesion request for ASD (Aero Space and
  Defence)
• 2006 Participation of the Annual Convention of
  ASD
• 2010 Signing the Memorandum of Collaboration
  with BDIA (Bulgarian Defence Industry
  Association)
• 2010 Signing the Memorandum of Collaboration
  with Department of  Armaments of Romanian
  Ministry of Defence

5
Offset/1 a legal obligation of RMoD
acquisitions programs

• RMoD acquisitions programs
• GBDA SHORAD V/SHORAD
• Frigates step 2,
• Corvettes
• SCOMAR
• Multi-role aircraft
• MTV Military Transport Vehicles.
• Offset obligations to min 80 of acquisition
  price
• PATROMIL devised an offset strategy for these
  programs together with its members

6
Offset/2 a legal obligation of RMoD
acquisitions programs

• The core of this strategy is to offer the
  cooperation and expertise
• capabilities of its members
• to develop, manufacture and maintenance and/or
  repair for high-tech military products.
• to increase the profit margin of all partners of
  such offset contracts
• to increase the reaction time to specific request
  of the Romanian MoD as technical assistance, up
  grade, maintenance and/or repair for existing
  military installations and equipment
• An example of the results of this strategy is the
  GAP FILLER
• Radar contract, a partnership of Lockheed Martin
  (USA), UTI
• Systems (private owned company) and ROMARMs
• AUTOMECANICA MORENI S.A. (state owned company)

7
PATROMIL a reliable partner/1

• Strengths
• comprehensive knowledge of the Romanian and
  Regional Market in the field of military products
  / services
• best contacts in the Romanian Market for military
  products / services
• covers many areas of interest for international
  military products /services suppliers
• expertise in design, engineering, project
  management, contract management, manufacturing,
  repair and maintenance of military products
• Weaknesses
• members technology level not very competitive,
  but improving
• members still state owned companies (SOE) but
  decreasing through new privatization wave
• man hour wage / salary package still not
  attractive for highly skilled specialized
  employees (risk of brain drain)

8
PATROMIL a reliable offset partner/2

• Opportunities
• might help solving the legal offset aspects of
  your supplying contracts for the Romanian MoD
• profit generating partner both in the Romanian
  and Regional Market for complex military products
  / services
• through its specialized members, important
  partner for developing new military products /
  services
• specialized association with important NATO
  members
• Threats
• aggressive development strategies from
  international military products manufacturers /
  associations
• dissolution, due to inadequate financing,
  mirroring the financial difficulties of many of
  its members

9
Conclusions

• Every year PATROMIL is strengthening its capacity
  and level of expertise
• PATROMIL through its members might become long
  term partner in developing highly profitable
  businesses both in Romania and in the Region
• PATROMILs good knowledge of Central Eastern
  Europe and its needs (similar for most of the
  former Warshaw Treaty countries) could be a key
  for doing business in the Region
• PATROMIL - YOUR PARTNER OF CHOICE
• in the major acquisition programs of the
  Romanian MoD and in the Region