Challenges and Opportunities for the Market Positioning of “Kintex” SHC in the International Trade in Defense Products

Светослав Спасов

doi:10.37075/RP.2024.3.05

Authors

Assoc. Prof. Dr Svetoslav Spassov Department of National and Regional Security, Faculty of Economics of Infrastructure, UNWE Author https://orcid.org/0000-0003-2636-0381

DOI:

https://doi.org/10.37075/RP.2024.3.05

Keywords:

Kintex, Defense industry, Military expenditures, International trade in defense products

F52, H54, L64

Abstract

The research aims to highlight the contemporary challenges facing the development of the Bulgarian government - owned "Kintex" Share Holding Company, trading in defense production Bulgaria. As such are outlined the poor financial performance in recent years has been outlined, combined with management problems and frequent political changes at the national level, especially against the background of the war in Ukraine and the associated with it increased production and sales by the country's defense industry. At the same time, opportunities are presented that Kintex can take advantage of, and thus the Bulgarian state, which will strengthen the company's image as a trusted partner in the trade of defence products and products with dual use.

References

Angelov, G.A. (2023). Ammunition, Howitzers, Tanks. Bulgarian Weapons in Ukraine, Reaching There via Export, Not as State Military Aid. URL: https://www.svobodnaevropa.bg/a/ukrayna-bulgaria-orazhie/32561804.html (accessed 06.03.2024)

Dimitrov, D. (2018). Bulgarian Defense Industry – 5 Years Later. Challenges for Industrial Growth in Bulgaria: Jubilee Scientific-Practical Conference, pp. 27-32.

Kanazireva, R. (2023). Entrepreneurship in the Public Sector: Corporate Entrepreneurship and Innovations in Public Enterprises in Bulgaria. Sofia: St. Kliment Ohridski University Press. ISBN: 978-954-07-5868-8

Kinteks EAD (2023). Analysis of Activities and Financial Condition of "Kinteks" EAD as of 30.09.2023. URL: https://kintex.bg/2-About_us (accessed 2024-03-07)

Sizov, Peyo Tanev (2023). Perspectives and Challenges for the Bulgarian Defense Technological Industrial Base in the Process of Re-Arming and Modernizing the Bulgarian Army. Sofia: P. Sizov.

Spasov, S. (2015). Development of the Military Industry in Bulgaria (1945 – 1989). Sofia: UNWE Publishing Complex. ISBN: 978-954-644-319-9

Spasov, Svetoslav Ivanov (2016). Development of the Defense Industry in Bulgaria 1990-2013. Sofia: UNWE Publishing Complex. ISBN: 978-954-644-921-4

Center for the Study of Democracy (2004). Bulgarian Arms Export: Assessment of the Control Mechanism for the Export of Small Arms and Light Weapons.

Dimitrov, Atanas (2021). “COVID-19” Pandemic: Rethinking Defence Spending in Bulgaria. Yearbook of UNWE, 25-39. DOI: https://doi.org/10.37075/YB.2021.1.02

Dir.bg (2023). "Kinteks" has signed contracts worth 11 million leva in 2023. URL: https://business.dir.bg/kompanii/kinteks-ima-sklyucheni-prez-2023-g-dogovori-za-11-mln-leva (accessed 28.02.2024)

Harper, D. & Reuters (2023). The Russian President has approved a record budget increase of around 30% for military spending in 2024, reaching 36.6 trillion rubles (€376.7 billion). URL: https://www.euronews.com/business/2023/11/28/russia-approves-record-spend-for-military-in-new-budget (accessed 05.03.2024)

Ilchenko, Oleksandr, Brusakova, Oksana, Burchenko, Yuliia, Yaroshenko, Artem, & Bagan, Yaroslav (2021). The role of a defence industry in the system of national security: a case study. Journal of Entrepreneurship and Sustainability Issues, 8(3), 438-454. DOI: https://doi.org/10.9770/jesi.2021.8.3(28)

Kintex. (2024). URL: https://kintex.bg/2-About_us (accessed 2023-10-08)

Luzin, P. & Prokopenko, A. (2023). Russia's 2024 Budget Shows It's Planning for a Long War in Ukraine. URL: https://carnegieendowment.org/politika/90753 (accessed 05.03.2024)

DANS entered "Kintex", announced former head of the enterprise. (2022). URL: https://www.mediapool.bg/dans-vleze-v-kinteks-obyavi-bivsh-shef-na-predpriyatieto-news338686.html (accessed 26.02.2024)

Bulgaria Indirectly Exported Weapons to Ukraine Even Before the War Began. (2023). URL: https://news.bg/politics/balgariya-iznasyala-indirektno-orazhiya-zaukrayna-oshte-predi-nachaloto-na-voynata.html (accessed 27.02.2024)

Pierre, Andrew J. (1982). The Global Politics of Arms Sales. Princeton University Press. DOI: https://doi.org/10.1515/9781400854271

The SIPRI Top 100 arms-producing and military services companies in the world, 2022. (2023). URL: https://www.sipri.org/visualizations/2023/sipri-top-100-arms-producing-and-military-services-companies-world-2022 (accessed 26.02.2024)

Spassov, S. (2020). Kintex: Review of Bulgarian Defence Production Export. Sofia: UNWE Publishing Complex.

Thrall, T. A. & Dorminey, C. (2018). Risky Business: The Role of Arms Sales in U.S. Foreign Policy. CATO Institute. URL: https://www.cato.org/policy-analysis/risky-business-role-arms-sales-us-foreign-policy (accessed 06.03.2024)

TI-DS Factsheet: Access to Information. (2023). URL: https://ti-defence.org/publications/access-freedom-information-defence-security-sector-corruption-factsheet/ (accessed 06.03.2024)