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GRUPA NIEWIADÓW - PGM SAPolish defence holding Niewiadow-PGM to cooperate with Proguns Group in ammunition production
ZSP Niewiadow, the subsidiary of Polish defence holding Grupa Niewiadow - Polska Grupa Militarna (PGM), has concluded an agreement with Proguns Group concerning cooperation in the production of 40 mm calibre ammunition, the company announced in a press release.
Under the agreement, the parties undertook to co-finance the implementation of 40 mm calibre ammunition production, including covering the costs related to production preparation, purchase of production resources and acquisition of production technology rights, with Proguns undertaking to pay an advance payment of PLN 4 million (EUR 945,600) for this purpose.
The detailed terms and conditions of the cooperation will be specified in a separate implementation agreement.
At the end of October, the Niewiadow-PGM Group, ZSP Niewiadow, Proguns Group and Forum 119 FIZ signed a term sheet for a joint investment worth PLN 67.4 million (EUR 15.9 mln), aimed at launching a modern 40 mm ammunition factory in Niewiadow.
As announced at the time, the project is to be carried out based on technology provided by the Singaporean company ST Engineering Advanced Material Engineering.
According to the agreement concluded in March, Proguns is to become part of the Niewiadow-PGM capital group.
doa/ ao/