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Romanian Cugir armament factory exports products worth 9 million dollars to the US

The Weapons Factory based in Cugir (central Romania) has recently signed a three-year contract with U.S. company Century Arms, with the value of the contract by March 2012 standing at more than 9 million dollars, Cugir company special manager Radu Rosianu said on Friday.

He told a news conference that the first contract with Century Arms, the biggest arms importer in the U.S. civil market, was signed in 1999.

'Up until now, we used to have year-by-year contract with this company. We have managed to close a contract by 2014 for the first time. We have also increased the prices and the monthly quantities, so that we might need to hire more specialised staff', Rosianu announced.

He added the prices were raised by some 20-30 percent, and the quantities were increased by 40 percent from what the company had delivered last year.

'The American company has asked us to increase the production because it can sell, it seems the U.S. market has managed to emerge out of the recession', Rosianu said. He underscored that all the company's exports are made via the Federal Bureau for Alcohol, Tobacco and Arms, therefore they are traced and are strictly legal.

The Cugir-based maker ships several types of weapons to the civil market.

Cugir Weapons Factory and Mechanical Works also runs defence contracts, with more than 90 percent of the exports being made via the U.S. Government.

Cugir Factory was set up in 1799, during the Habsburg Empire, being named the Iron and Steel Factory at that time. The factory employed more than 20,000 workers in 1990, with only 5,000 being still employed in 2004, Agerpres informs.