PGZ secures 120 billion zlotys in defense contracts and plans major rxpansion of production capacity

In a major announcement that underscores Poland’s growing defense capabilities, Polska Grupa Zbrojeniowa (PGZ) revealed it has signed approximately 50 large-scale contracts worth a total of PLN 120 billion over the past year. The Group is now preparing to significantly expand its production capacity, with a focus on armored vehicles, artillery systems, and air defense platforms.

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18 april 2025   |   12:13   |   Source: PAP / Gazeta Morska   |   Prepared by: Kamil Kusier   |   Print

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During a recent press briefing, Acting CEO Arkadiusz Bąk outlined the company’s achievements and strategic plans following the departure of former CEO Krzysztof Trofiniak. Among the most high-profile contracts are those related to the Narew short-range air defense program, developed in cooperation with British partners. Under this program, the Polish Armed Forces are set to acquire 23 air defense batteries, each comprising six launchers for CAMM and CAMM-ER missiles.

Several PGZ subsidiaries play a central role in this endeavor, including PIT-RADWAR, Jelcz, and the Military Communications Works No. 1 (WZŁ-1), which are responsible for key components like fire control and reconnaissance systems.

In the land systems sector, PGZ continues to deliver Borsuk infantry fighting vehicles (IFVs), Krab self-propelled howitzers, and hundreds of heavy-duty military trucks produced by Jelcz. A recent contract for the delivery of 116 Borsuk IFVs marks a significant step in fulfilling the Polish military’s broader demand for up to 1,500 units across multiple configurations.

Given the current production load, PGZ is actively exploring diversification strategies across its manufacturing sites. Huta Stalowa Wola (HSW) remains heavily engaged in delivering not only Borsuk and Krab, but also mortar carriers (RAK), command and ammunition vehicles, and the ZSSW-30 unmanned turret system—already fielded on both Borsuk and Rosomak platforms.

One of the Group’s priorities is to revitalize production at Bumar Łabędy, a historic facility previously responsible for T-72 and PT-91 tanks. While earlier plans focused on a second Krab production line, PGZ now considers establishing production of the Universal Modular Tracked Platform (UMPG) there, forming the backbone of future armored systems.

Looking forward, PGZ is also preparing for next-generation platforms requested by the Polish Armed Forces, including the New Wheeled Armored Personnel Carrier (NKTO), envisioned to succeed the Rosomak, and the Heavy Infantry Fighting Vehicle, intended to operate alongside M1 Abrams tanks. In contrast, Borsuk is optimized for amphibious operations and will complement lighter platforms like the K2 and Leopard MBTs.

According to Bąk, two scenarios are currently under consideration for future development: conducting a full-scale R&D program using PGZ’s domestic resources, or entering a licensed production partnership with a foreign OEM. The decision will likely hinge on delivery timelines, as international collaboration may accelerate fielding capabilities.

As part of its long-term industrial strategy, PGZ also plans to establish a brand-new production facility for Jelcz vehicles. While the current Jelcz-Laskowice site is operating at full capacity, physical constraints within outdated buildings are hindering output. A completely new factory—location yet to be confirmed—would significantly boost Jelcz’s manufacturing capabilities. Additionally, PGZ plans to utilize the production capacity of Autosan in Sanok, also under HSW’s oversight.

Bąk emphasized that meeting the evolving needs of the Polish Armed Forces requires rapid scaling of domestic industrial capabilities: “Our teams are doing everything they can with existing infrastructure, but we must now build for the future.”

The announcements come amid a broader push by the Polish government to modernize its armed forces and strengthen the country’s defense industry through strategic investments and international collaboration.

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