The Polish Armed Forces Group organizes its structure and strengthens production potential. The integration of companies, the improvement of fresh capabilities, the polarization of abroad structures and the expanding export ambitions are to make PGZ a stronger player in the European defence market. The Group's plans and challenges are discussed by its president Adam Leszkiewicz.
The Polish Armed Forces Group has undergone major organisational changes. As of 1 July, its companies have been assigned 7 product divisions. Is this the end of the reorganization?
We never assumed that reorganization would be a task that had a beginning and an end. This is simply a continuous process involving the request to adapt to challenges and tasks. Many of the measures that have been taken to order the Group have already been carried out, but there is simply a lot ahead of us. This is not the time for definitive summaries. Nevertheless, there have already been 3 mergers, 2 more in progress. By introducing divisions as business units, we change any awareness of the interior functioning of the company. Within these divisions, cooperation between companies active in the production of a akin scope of weapons and equipment will be strengthened, i.e. the integration of business units around products. Coordination of actions at this level will besides avoid interior competition between them for procurement, which has happened in the past.
What are the reorganization priorities of the PGZ-et?
We carry out projects that have been suspended so far, specified as the production of 155 mm artillery ammunition. We are besides trying to strengthen PGZ-et activity in areas that were considered not very strong on the Group. I mean cooperation with the Ukrainian manufacture or private sector in Poland. At the same time, we solve problems, and specified are the situation of H. Cegielski Poznań, which we will combine with Military Automotive Plant. In this process we will besides usage the possibilities of Poznań Stomil.
You have thus created the Wielkopolska Panzer Plant Hipolit Cegielski. What are you trying to achieve?
W Poznań has the possible for competences, people and infrastructure, so far dispersed in 3 companies. We hope that this will let us to increase and accelerate the production of key armored vehicles for the armed forces. We are considering launching specialized versions of Borsuk, bridges or unmanned vehicles in the fresh company. However, it may be possible that Poznań plants will be included in the K2PL tank program by utilizing the dynamometer.
What has personally given you the top satisfaction as a ‘ster’ of the PGZ-etu?
First of all, it is crucial to emphasize the squad work of the full organization of the Polish Armed Forces Group. For me personally, however, the success is that the structural changes in the PGZ-et in full cooperation with employees and managers have been managed peacefully. The same applies to integration processes throughout the Group. Looking at the last fewer weeks, it is surely besides a preliminary agreement with SAAB, who selected PGZ as a partner as part of the submarine program for the Polish Navy. Thus, in Poland we will gain the ability to service and repair them. This agreement confirmed the advanced competence of the PGZ War Shipyard. The agreement to make a joint venture between Mesko and Eurenco, which will produce modular loads and three-base propellants for 155 mm artillery ammunition, is besides satisfactory. The key event for us was the signing of dozens of agreements at the end of May under the instrument for enhancing Europe's security, the SAFE.
So what else needs to be changed to PGZ to further develop?
The integration of the Group and the cooperation of the office with company boards require much work. The aim is to think not in categories of individual establishments, but in categories of the full Group, due to the fact that the Group as a full is acting for Polish safety. It's not easy due to the fact that companies are a small country in the country. The PGZ-etu boards come and go all fewer years, and in companies any stay in positions after respective decades and frequently respond reluctantly to changes.
There is besides a lot to do about cooperation with Ukraine – we all expected joint projects, technology transfers and production in Poland. We had good talks with Ukrainian partners, even during Eurosatory in Paris and at the conference on the reconstruction of Ukraine in Gdańsk, so I hope that this will consequence in the launch of concrete projects.
Let's go back to SAFE. Are you satisfied with the value, subject substance and scope of the contracts concluded with MON?
The most crucial thing for us is responsibility. The question of satisfaction is secondary. SAFE quotas seem huge, though they are most likely always besides tiny to meet military needs. All the more so, most of them will go to the Polish industry. As PGZ we cannot complain, due to the fact that we have already obtained orders for respective tens of billions of PLN from projects carried out by Poland, but we are inactive counting on joint orders with another countries.
Which products can you order from another countries within SAFE?
We gotta offer the already successful outdoor anti-aircraft rocket set Lightning and Baobab overhead mine system, but we besides announcement the interest produced in Bydgoszcz system
Unmanned Visionary.
So much for SAFE, but we're besides expected to build a rescue ship for Sweden. Can cooperation with this country develop?
As far as the maritime domain is concerned, we are besides talking about unmanned systems and torpedoes. Topics besides arise concerning land equipment and possible cooperation on 3rd markets.
It remains to be hoped that cooperation with the Swedes will be easier than with the Koreans.
Unfortunately, the first contracts for K2GP tanks, K239 rocket launchers and K9A1 self-propelled Haubices have utilized Korean partners to think that we only buy finished products. They were amazed by our requirements regarding the production of equipment in Poland and its Polishization. In the arms market, everybody fights for their own. From the point of view of Korean partners, the more they do at home, the better for their industry. And we want the K2PL tanks ordered in subsequent implementing contracts to be produced as much as possible in Gliwice, with an expanding number of Polish components.
Industrial cooperation with the United States is besides difficult. There was no agreement on the key projects for us to launch ammunition production for Patriots and HIMARS.
Negotiations on large projects are always hard and long-term, but late there have been affirmative signals. American openness to cooperation surely increased the SAFE instrument, which limited the non-European contribution to the ordered equipment to 35%. akin provisions will appear in fresh tools that advance European industry. I think American companies have understood that they besides request to produce in Europe to avoid falling out of our market.
Are we ready to share licenses or to make bets abroad in joint ventures?
Yes, we are open to different solutions. We're just working on a task where we're going to share a licence for circumstantial equipment or cooperate in specified a way as to produce abroad. We are besides ready to store on another companies markets if we are curious in offers.
An example of a common export offer is simply a combat Borsuk infantry car with the Slovak Turra Tower 30. In what marketplace does he have a chance?
This offer is primarily directed towards the Gulf countries – due to our partner's competence in this area. The same applies to Rosomak with the Slovak tower, due to the fact that there, due to the terrain, possibly even more preferred are wheeled vehicles than caterpillars.
The 5th Achilles PGZ-etu is the request to import engines into vehicles. How are you going to change the situation?
We talk to suppliers of engines and gearboxes to decision the production of these components to Poland and pollinate it. We are besides working on the concept of an engine center in Kalisz. WSK-PZL already has experience in the production of aircraft engines and tries to face the challenge of these to drones or rockets. The most crucial issue, however, is the issue of motor vehicles. We can produce them in cooperation with our partner from the south, or Tatra from the Czech Republic. The scale of needs – including in the context of Jelcz trucks – makes it economically sensible.
As for Jelcz, there are problems with timely delivery. Would it not be possible to solve them by changing vehicle production technology? For example, start turning the compartment alternatively of welding.
We're not changing technology due to the fact that we don't know if time will let it. We are presently focusing on restoring quantitative capacity through the usage of co-operators. Cabins, for example, late went to WZL in Bydgoszcz.
Does PGZ have a chance to become a key European maker of equipment in the armored domain in a fewer years?
I think there are conditions for this, we are developing infrastructure, but we already have competence not only to produce but besides to make fresh products. There is simply a large construction office in Stalowa Wola Hut, which already has successful projects on its account, specified as a universal modular caterpillar chassis, and is now working on a dense combat infantry car. In future, this office can work for the Group as a whole. We should besides not forget the Gliwice OBRUM, where there is possible to make fresh solutions in the panzer domain.
PGZ works to launch the production of K2PL tanks, specialized versions of Borsuk, weapons and equipment for the Narew air defence program, Barracuda long-range missiles and increase the production capacity in the field of ammunition, with emphasis on the 155 mm artillery caliber. What are the another key production projects that will strengthen the Group's position on the Polish marketplace and increase its chances of expanding to abroad markets?
We want to be much more involved, among others, in the production of autonomous unmanned land, sea and air platforms and rocket weapons, but besides in more efficient cooperation and faster commercialization of solutions offered by start-ups. The pace at which the civilian marketplace is presently experiencing interesting dual-use solutions, with expanding capacity for mass and low-cost production of defence systems, makes this section of the arms marketplace very forward-looking for us both home and foreign.

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