Polish Armaments Group to receive PLN 2.4 bln from Capital Investment Fund
Polish Armaments Group (PGZ) will receive PLN 2.4 billion (EUR 565.9 mln) in funding from the Capital Investment Fund (FIK) to expand its munitions production capacity, Poland's state assets minister Jakub Jaworowski said on Wednesday at the signing of an agreement with PGZ. Poland's Ministry of State Assets (MAP) is the dispenser of the FIK.
"These agreements amount to PLN 2.4 billion. The first funds will be allocated already this month," minister Jaworowski said, noting that the start of production under the subsidised activities is planned for the end of 2027.
"Ultimately, we will be able to produce 150,000-180,000 large-calibre missiles [annually - PAP ed.]," he added.
According to Poland's Ministry of State Assets (MAP), this is currently around 20,000 per year.
In a press statement, MAP stressed that thanks to the funding granted to the four PGZ companies of the ammunition domain (Dezamet, Mesko, Nitro-Chem, Gamrat), it will be possible to both further expand and create new infrastructure and technological lines.
"Thus, the concept of organising three ammunition factories within the PGZ group will be realised," it pointed out.
The ministry added that this would allow for a fundamental increase in the production potential for materials and munitions, including the currently key 155 mm calibre ammunition.
In total, PGZ has submitted four applications to the FIK amounting to approximately PLN 2.4 billion (EUR 565.9 mln).
At the end of June, Jaworowski told the Financial Times that Poland would increase its production of large-calibre ammunition fivefold and PGZ would receive PLN 2.4 billion (EUR 565.9 mln) for this purpose.
On June 11, Prime Minister Donald Tusk informed the lower house of Poland's parliament Sejm that the government wants Poland to be self-sufficient in the main ammunition grades within three years.
There are currently five ammunition companies operating within PGZ: Mesko S.A. in Skarzysko-Kamienna, Dezamet S.A. in Nowa Deba, Belma S.A in Bydgoszcz, ZPS Gamrat sp. z o.o in Jaslo and Nitro-Chem S.A. in Bydgoszcz.
An act on financing activities aimed at increasing ammunition production capacity was signed by President Andrzej Duda in December last year. Under this act, the FIK was provided with PLN 3 billion (EUR 707.4 mln) earmarked for co-financing investments by defence companies in increasing ammunition production capacity.
Ammunition companies, including state-owned and private firms, could apply for support. The deadline for applications passed at the end of March.
jz/ ao/ nl/
