The companies belonging to the Polish Armoured Group – Jelcz, PIT-Radwar, Military Armoured Plants and Mechanical Plant Tarnów – will receive PLN 3 billion from the Capital Investment Fund. The money will be utilized to grow production and maintenance capacity. Jelcz will spend them on a fresh factory, for example, and PIT-Radwar on a production plant and laboratory.
Funding is related to “Narew” programme, means equipping the armed forces with anti-aircraft and short-range rocket defence systems. This is 1 of the most crucial projects presently being implemented by the military. According to it, soldiers will have 23 air defence systems batteries, the main weapon of which will be CAMM-ER missiles (with a scope of more than 40 km) and Polish radars will be liable for detecting and indicating targets – directing fire by codenames Saina, preliminary P-18PL detection and passive PET/PCL location.
In order to cope with the timely production of Narwi components, the government decided last year that it would fund the companies from the PGZ-Narew consortium, which carry out this project, the amount of PLN 3.88 billion. The Capital Investment Fund is liable for the transfer of money under investment agreements.
Increase production capacity
On Monday, representatives of 4 companies from the consortium – Jelcza, PIT-Radwaru, Military Armed Forces Plant from Grudziądz and the Tarnów Mechanical Plants – initialled investment agreements with the Fund amounting to nearly PLN 3 billion. In order to receive support, the companies had to present a very detailed investment programme aimed at importantly expanding their production capacity. Most, due to the fact that PLN 1.72 billion, will receive PIT-Radwar. To Jelka will scope 756 million, to ZM Tarnów 309 million, and to WZU – little than 200.
Wojciech Balczun, Minister of State Assets, Adam Leszkiewicz, president of the Polish Armed Forces Group, and Vice-President of PGZ-etu Marcin Idzik took part in the signing of the agreements. – The raising of funds from the Capital Investment Fund for the expansion of production capacity will let to maximise the competences of these plants and to implement programmes for the Armed Forces of the Republic of Poland more quickly, especially in the key field of the future fight against air defence", emphasised Adam Leszkiewicz, president of PGZ SA. It adds that funds will not only be utilized to implement the “Narew” programme. – He besides explained to a number of another orders that we hope to get for the PGZ Group.
In turn, the Minister of State assets pointed to the additional benefits of the company's co-financing. “With these agreements, we not only strengthen Poland’s defence capabilities, but besides build permanent foundations for an innovative and competitive home defence industry,” said Wojciech Balczun.
What's the backing for?
The company, which received the largest backing from FIK, i.e. PIT-Radwar – radar supplier for the Narew system and Pilica+ and Wisła – intends to allocate PLN 1.72 billion for the construction of a fresh production plant and investigation laboratory in Kobyłka.
The second is Jelcz in terms of the allocation. The company wants to usage nearly PLN 760 million to build a fresh vehicle factory, which will let to increase the number of vehicles produced – especially various types of trucks – to over 1.6 1000 a year.
In turn plants from Grudziądz and ZM Tarnów plan to grow existing production and R & D facilities, among others by setting up fresh halls and upgrading the machinery park.
Systematic assistance
This is not the first pool of funds to flow to the Polish Armed Group from the Capital Investment Fund (a state-owned special-purpose fund, which is owned by the Minister of State Assets). In December 2024 FIK signed 3 ‘proinvestment’ agreements with another companies forming part of the PGZ-Narew consortium. The co-financing then amounted to almost PLN 500 million, and the money flowed to Military Communications Plants No. 1 SA, PCO SA and Military Electronic Plants SA.