The Transformation of the Largest Aircraft Factory of Romania in Tractors Factory as Result of the Soviet Occupation

Abstract

After recalling the creation in 1925 and the rise of “Romanian Aeronautical Industry” (IAR) the most efficient plant in Romania during the period between the world wars this paper analyzes, in detail, its two periods of profound upheaval. The first in the context of the occupation of Romania by the Soviets and the establishment of the communist dictatorship sees the transformation of the IAR in tractor plants. The second, after December’89 in the process of exit from communism, is characterized by a long agony of the factory that ends with its liquidation. Until the end of the World War II, IAR produced more than 1,200 aircraft with over clean design and the other half under license: PZL (Poland), Fleet (US), and Savoia-Marchetti, Nardi (Italy), Fiesler-Storch and Messerschmitt (Germany). The Convention of the armistice with the Soviets was very strict and was only the beginning of a series of crimes (liquidation of elites) and abuse. Of these confiscated as compensation (followed by the nationalization) of certain industrial, removal or change of use to others etc. The latter case is illustrated perfectly by the IAR. In 1946, it changed its specialization, into producing tractors. The first was the IAR-22, a hybrid between Hanomag and Lanz Bulldog, followed by tracked Soviet models, KD and KDS. Early in 1960, appearing on the market the first fully Romanian tractor design, as well equipped with Fiat engines. The plant has grown, reaching a production capacity of 32,000 tractors per year, with 24.000 employees, having a good price on the market (11.000 USD in comparison with others, e.g. John Deere—25.000 USD). After December 1989, the situation of the plant was constantly deteriorated and often, employees of the factory took to the streets to express their discontent. In 2002, the company was still producing 4000 tractors. In 2004, it was close to the privatization; the potential buyer was the Italian Landini Group, or Mahindra. For different reasons (it’s difficult to find a real reason) the privatization did not take place. In 2007 the plant was closed, entering in a process of liquidation and its assets were purchased by Flavus Invest Ltd. of Bucharest, owned by the British Investment Fund Capital Partener Centera.