Romanian helicopter producer plans to get EUR 11 mln financing

Romanian state-owned helicopter producer IAR Brasov plans to draw EUR 11-12 million from investors on the Bucharest Stock Exchange to modernize its production facilities and buy new equipment. The company will make this investments if it becomes a supplier for the new Airbus Helicopters factory in Brasov, which will produce Super Puma MK1 helicopters in Romania. Airbus will start building the new factory in October this year, on a 1.5-hectare land plot leased from IAR Brasov. The Romanian company aims to close several contracts with Airbus Helicopters to supply structure components and electric cables to the new factory, reports local Wall-street.ro. IAR Brasov transferred its shares from the RASDAQ market to the main market operated by the Bucharest Stock Exchange to increase its visibility and to access cheaper financing from investors. Romania’s Ministry of Economy currently holds about 65% of IAR’s shares. The company’s market capitalization is EUR 20.5 million, after the share price has almost tripled since the beginning of this year. IAR Brasov had a turnover of EUR 22.9 million in 2014, three times higher than in 2013, as the company got more orders from Romania’s Ministry of Defense. Its net profit also went up threefold, to EUR 1.3 million. editor@romania-insider.com