ROMARM chief warns most subsidiaries face bankruptcy amid order shortfall
ROMARM General Director Răzvan Marian Pîrcălăbescu says the majority of the company's 15 subsidiaries are on the brink of insolvency due to a lack of domestic orders and high maintenance costs.
In an interview on Aleph News, ROMROM's General Director Răzvan Marian Pîrcălăbescu warned that most of the firm's 15 subsidiaries are nearing bankruptcy because they receive no internal orders and must bear expensive obligations to keep war-time capabilities operational. He pointed to obsolete machinery and inflated administrative costs, with each subsidiary running its own board and management team. The firm intends to reduce the subsidiary count and streamline functions, stressing that the move aims at re-technologisation, not job cuts.
Pîrcălăbescu cited the Cugir weapons factory as an example, where 900 workers operate outdated lines that would require far fewer staff if modernised. He also explained that ROMARM now relies on exports and small sales to other ministries, and that predictable defence procurement plans are essential for sustaining the workforce.
Why it matters
The warning signals potential collapse of a key defence supplier, threatening Romania's military industrial base and jobs.
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