China’s NORINCO, AVIC Among Top 10 Defense Companies Worldwide; SIPRI

China’s North Industries Corporation (NORINCO) and the Aviation Industry Corporation of China (AVIC) may have ranked among the top ten defense companies worldwide by Stockholm International Peace Research Institute (SIPRI) in a recent report on global military industry.

The SIPRI Top 100 arms-producing companies, 2014 report published Monday states that due to lack of data and based on reasonable estimate of arms sales for most companies Chinese companies couldn't be added to the list. Some information available on the 10 major state-owned conglomerates under which most Chinese arms industry is organized, at least 9 of the 10 companies would certainly be in the Top 100 if figures were available.

The report states, “Of these (10 Chinese companies), 4 to 6 would probably be in the Top 20, and two—the aircraft producer AVIC and the land systems producer Norinco—may be in the Top 10. China’s military spending increased more than five-fold in real terms between 2000 and 2014 and the country has engaged in major efforts to develop its domestic industry. In addition, China’s arms exports have grown substantially in the past decade.”

US’ Lockheed Marin tops the list followed by Boeing, UK’s BAE Systems, US’ Raytheon, Northrop Grumman and General Dynamics.

Russia despite difficult economic conditions, continued to rise in 2014. The number of companies of the total 100 went up from 9 to 11. The Russian company showing the most significant growth in arms sales is Uralvagonzavod, with an increase of 72.5 per cent in its arms sales. Almaz-Antey, with a near 23 per cent increase in arms sales, is now in 11th position.

‘Russian companies are riding the wave of increasing national military spending and exports. There are now 11 Russian companies in the Top 100 and their combined revenue growth over 2013–14 was 48.4 per cent,’ says SIPRI Senior Researcher Siemon Wezeman.