Profits in first year for spinoff from bankrupt producer

Published: 2/23/2000

According to media reports, the PZL Mielec aviation plant in southeast Poland that, in autumn 1998, was separated from the bankrupt WSK PZL Mielec by the Industrial Development Agency (IDA), has completed its first year of trading with a profit of 1.1m zloty ($270,000). This confirms the optimism of its CEO, Daniel Romanski, in September 1999, who stated the company was profitable at the end of the third quarter and had $120m of orders in hand. The plant, which is now 90% owned by the IDA, has plans to double sales of its aircraft, principally the M-28 Skytruck, to markets in South America, Africa and the Middle East. This followssuccessful sales efforts in Venezuela, in particular, where aircraft have been sold to the country's armed forces and National Guard. The company is also seeking further sales from its other products. This includes the M-18B Dromoder (Dromedary), a development of the M-18 agricultural and fire fighting aircraft, which was first flown in 1976 and of which 680 of all types have been built to date. 90% of these have been exported. The Brazilian market is seen as being especially attractive, where the plant is estimating a possible 40 sales a year and has even negotiated local production of the aircraft. The company's M-26 Iskierka, a two seat primary training aircraft is also seen a potential seller, with forecast sales of 20 aircraft to Venezuela, in addition to the two aircraft delivered in 1998. The $180,000 aircraft, in civilian configuration, has also been sold into the USA with FAR pt 23 certification, through distributor, Melex, with deliveries beginning in 1996. Air Wolf, the aircraft export name (considered to be more macho than the Little Spark), is reported to have attracted the interest of the Israeli Defence Forces as a replacement for 35 Super Piper Cubs. Production of the M-28 has been sustained with the help of Bank Rozwoju Ekspotu, which has provided $6.6m of financing for the plant, which currently employs 1500 people. The company continues to produce doors for Boeing and for BAe Systems. It has been producing components for the Hawk since November 1998 and, more recently, in July 1999, parts for the wings of the Avro Regional Jet, with speculation that Airbus components may follow, in company with the other IDA controlled plant, Swidnik.

Article ID: 1467