Prime Minister Donald Tusk, MoD Tomasz Siemoniak, Treasury Minister Wlodzimierz Karpinski and CEO of WZM, Adam Janik, visiting the Military Mechanical Works in Siemianowice Śląskie, 16.09.2013 Photo: PAP/Andrzej Grygiel
The new arms group will unite “all key defence industries”, Tusk said, adding that the group is the result of cooperation between the defence and treasury ministers.
During a visit to the Wojskowe Zaklady Mechaniczne (Military Mechanical Works) in Siemianowice Slaskie, the prime minister hinted that the new group may be called ‘Rosomak’ (Polish for ‘Wolverine’), a nod towards the plant’s key product, the Rosomak Wheeled Armoured Vehicle.
Meanwhile, it was announced by Treasury Minister Wlodzimierz Karpinski on Tuesday morning that the consolidated company will be called Polska Grupa Zbrojeniowa S.A (Polish Arms Group), and that work has begun on a new statute for the company.
The arms group is to join Huta Stalowa Wola, a producer and supplier of military equipment, Polski Holding Obronny (Polish Defence Holding) – which already encompasses a number of different defence companies – as well as eleven other businesses present in the industry, such as Bumar.
The move comes in order to “better coordinate” the Polish defence industry, and to create more business for small and medium enterprises (SMEs).
Onwards and upwards
“The decision to go ahead with the consolidation of the defence industry is of key significance in order to realise its technical modernisation,” Defence Minister Tomasz Siemoniak told journalists at the Silesian works on Monday.
Siemoniak furthermore underlined that 130 billion zloty (32.5 billion euro) has been earmarked for the modernisation of the military over the next ten years. “Without the consolidation of the defence industry this wouldn’t be possible,” the defence minister claimed.
The consolidation also comes as European defence markets have also started to go through mergers of their own, and that Polish exports will have a greater chance to break through onto European markets, Siemoniak stated.
“I am absolutely convinced that the interests of the Polish Army and the Polish economy have crossed over well here,” treasury minister Karpinski added.
According to the treasury minister, the new consolidated arms group will bring some 6 billion zloty (1.5 billion euro) in revenue and employ 13,000 people. (jb)