Polish Armaments Group to get EUR 101-mln capital injection

2019-11-27 15:42 update: 2019-12-03, 17:46
Photo: PAP/Piotr Polak
Photo: PAP/Piotr Polak
Dominant defence firm Polish Armaments Group (PGZ) is to receive a capital injection of PLN 436.6 million (EUR 101.2 million) under a deal signed between Prime Minister Mateusz Morawiecki and PGZ President Witold Slowik on Wednesday.

"We are showing what our aims are in ensuring security to the Polish army, to Poland," Morawiecki said, describing the deal as a "breakthrough."

The additional funds will be earmarked for investment in PGZ subsidiary Mesko. The investments in facilities in Skarzysko-Kamienna, southern Poland, where the deal was signed, and Pionki, south-central Poland, will help projects related to production of modern gunpowders, ammunition and missiles until 2022. The money will also enable an increase in production capacity, and the expansion of a machine area and storage facilities. 

The deal signed Wednesday is worth PLN 400 million (EUR 92.7 million) which, together with PGZ's own funds and money from the Reprivatisation Fund, brings the entire capital injection to PLN 436.6 million (EUR 101.2 million).

After signing the deal, PM Morawiecki said that Poland was very experienced as a result of its history. "We know perfectly well that we have to manage to produce our own weapons, we must have our own strong defence industry and a strong army," he said. "And there is no strong army without a strong Polish defence industry." He added that the deal was a breakthrough and would enable the production of modern ammunition. "It is one of the most important contracts for many years," he said. (PAP)