PGZ Polish Armaments Group

With the consolidation by the Polish Government of the large majority of its arms production, maintenance and repair facilities into a single company, PGZ is treated as the successor to Polski Holding Obronny. The Polish Armaments Group (PGZ - Polska Grupa Zbrojeniowa) will ultimately consolidate several dozen companies (representing the defence, shipyard, offshore, real property and high-tech sectors) with total turnover ranging at PLN 5B and more than 19 thousand employees. As a result of the consolidation process in progress, one of the largest defense groups in this part of the world will be established.

On 01 September 2015, the 1st day of the 23rd International Defence Industry Exhibition, Wojciech Dabrowski, President of the Management Board of the Polish Armaments Group (PGZ), presented the Strategy of the Capital Group for 2015-2030.

The plan assumes that the revenue of 38 key companies belonging to the Group will be tripled from the current PLN 4B to PLN 12B annually, at the same time achieving at least 15% EBITDA by 2030. For this purpose, PGZ intends to win contracts in individual Technical Modernization Plan programmes worth above PLN 60B, thanks to which more than 100 new products will be created. The Group is planning to reach up to PLN 6B of annual revenue from export sales and sales to civil markets. The strategy also provides for entering new activity areas – apart from traditional product domains PGZ is going to pursue its activity in the field of cyber technologies as well as aerospace and satellite technologies.

“This is the best, most comprehensive and full plan for the Polish defence industry in history. Thanks to its execution PGZ is going to be among the top 10 largest armaments companies in Europe in 15 years,” said Wojciech Dabrowski, President of the Management Board of PGZ in Kielce. “PGZ as the new national champion is supposed to build economic growth of the whole country,” underlined Dabrowski.

Tomasz Siemoniak, Deputy Prime Minister and Minister of National Defence participating in PGZ strategy announcement, reminded that the decision on establishing PGZ had been made in 2013. “These 2 years were utilised very effectively. The Polish defence industry is going the right way,” said Siemoniak. He stressed that if the armaments industry succeeded, then also the Polish Army would benefit from that.

PGZ’s strategy for 2015-2030 was prepared by more than 150 people from various companies belonging to the Group. “We invited both members of Management Boards and specialists from our Group to cooperaton in order to make a full use of their potential and experience,” said Wojciech Dabrowski. “PGZ is going to be a part of Poland’s national security system,” underlined Dabrowski.

PGZ, is the leader of the Polish industry and one of the largest defence groups in Europe. It concentrates more than 30 companies (of defence, shipyard, new technologies sectors), achieving annual revenue of circa PLN 5 billion. By making use of the technology Polonisation potential, close cooperation with the Polish scientists and focus on the research & development process, PGZ offers innovative products which enhance Poland’s security.

PGZ offers, among others: very short range air defence system including POPRAD system and SOLA radar; GROM mobile anti-aircraft missile set; E-310 unmanned aircraft system; ROSOMAK armoured personnel carrier; artillery system with KRAB self-propelled howitzer; individual soldier equipment with BERYL rifles. In addition, PGZ has expertise to design, construct and equip vessels. Furthermore, PGZ modernizes and maintains vehicles, airplanes, helicopters, vessels (also post-Soviet equipment).

On 2 March 2017 in Rome, Polish Armaments Group (PGZ) and the Italian company Leonardo signed a Cooperation Agreement for helicopters. This is mutual confirmation of the cooperation and continued dialogue on areas of potential industrial cooperation around production, servicing and maintenance of helicopters for the Polish Armed Forces. This agreement between Polish Armaments Group and Leonardo is a further step towards enhancing the cooperation between PGZ and its Italian partner, which began in 2015.

The collaboration between PGZ and Leonardo, involves determining areas of potential industrial and business cooperation around helicopter programmes for the Polish Armed Forces’ Technical Modernization Plan. The agreement signed on 2 March 2017 in Rome, confirms the intention to continue the dialogue between the two companies, and identifies specific areas of cooperation between PGZ and Leonardo.

The aim of the agreement is to strengthen cooperation between the PGZ Group and Leonardo for the supply of helicopters offered by the Italian company to the Polish Ministry of Defence. It includes the AW149, AW101 and W-3PL “Gluszec” models. Should Leonardo be selected by the Polish MoD for the new helicopter requirement, companies in the PGZ Group will take part in the servicing and manufacture of helicopters. This also involves extension of the industrial capability of the companies included in the PGZ Group in servicing or production of components, systems or levels of the chosen helicopter. The cooperation program also foresees the participation of a number of companies included in Polish Armaments Group: WZL-1 S.A., WZL nr 2 S.A., WSK „PZL – Kalisz” S.A., PCO S.A., PIT-RADWAR S.A., ZM „Tarnów” S.A., MESKO S.A. and WCBKT S.A.