PLN 220 Million - Profit Recorded By The PGZ Companies. “Key value of the air-defence programme”

The companies belonging to the Polska Grupa Zbrojeniowa (Polish Armament Group, also known as PGZ) recorded more than PLN 5 billion of income and PLN 226 million of net profit.Back in 2014 the formal process of consolidation, regarding the defence industry, was finally completed.At the moment, the Group is willing to create a defence sector company which not only would be able to support the Polish Armed Forces modernization, but also which could be competitive within the foreign export markets.For PGZ, the way in which the domestic modernization programmes are realized, particularly those related to the SHORAD and MRAD systems (“Narew” and “Wisła”), are bearing a great significance.The air defence constitutes one of the key areas of involvement for the group, besides modernization of the Polish Navy, along with the visual and satellite reconnaissance capabilities.

During the presentation of the “PGZ Opening Report”, President Wojciech Dąbrowski noted that successful consolidation of the Group’s companies made it possible to complete a process which has been lasting for several years now. Currently, the Polish Armament Group is going to focus on deepening the level of integration, regarding the companies within the individual areas, including those dealing with execution of the research and development and manufacturing initiatives, as well as those which are handling the financial, trading or marketing issues.

Within 12 months we have accomplished a thing which was unachievable for several years. Not many people believed, many doubted, but ultimately, we have managed to consolidate the separated, scattered, competing Polish armament industry. Now, we are facing another, even tougher challenge. We are going to carry out business integration of our companies, within the scope of numerous processes, including manufacturing, R&D, trading or marketing.

Wojciech Dąbrowski, President of the PGZ Company

President of the PGZ company stated that up until now, the Group also managed to get prepared for the initiatives related to modernization of the Armed Forces, including cooperation with the foreign partners. Polish Armament Group places particular stress on the “Visual and Satellite Reconnaissance” programme (including acquisition of the UAV systems), besides the air defence systems and neutralization of the maritime threats. Consortia have been created, in order to realize the short and medium range air defence and anti missile defence programmes - “Narew” and “Wisła” - as well as in order to deal with the short range tactical UAV systems acquisition. The latter initiative is also known as “Orlik”.

The future situation of the Polish Armament Group is very dependent on the way in which the air-defence programme is going to be realized. Depending on participation of the Group’s companies in the “Narew” and “Wisła” programmes (VSHORAD systems are going to be realized by the Polish industry, in full), the PGZ companies may gain significant income, ranging from 3, up to 17.4 billion zlotys. President Dąbrowski stresses the role of the “Narew” programme which – in best case scenario – may generate even PLN 8 billion, solely within the period between 2019 and 2022.

Polish Armament Group is also involved in other technological modernization programmes, the aim of which is to deliver artillery, combat vehicles or individual equipment for the soldiers. Throughout the last 12 months, PGZ undertook relevant decisions, e.g. regarding the license manufacturing of the Krab self-propelled howitzer chassis. This is going to make it possible to execute one of the most significant modernization programmes carried out for the Polish Army. Until the end of August the Group is additionally going to prepare an offer pertaining the potential upgrade programme for the Leopard 2 tanks which are utilized by the Polish Army. Negotiations with the foreign partners are currently being carried out.

According to the “PGZ Opening Report”, execution of the armed forces technological modernization plan may result in creation of more than 100 export products. From the point of view of the company, this fact is relevant, as, according to the long-term estimates (including the forecast for the period after 2022), significant export sales increase would be required to maintain good financial status of the Polish Armament Group.

Up until now, the Group’s companies have sold Grom MANPADS for the Lithuanian Army and Beryl carbines for the Nigerians. Moreover, a memorandum of understanding has been signed, the aim of which is to sell 30 examples of chassis of the Rosomak wheeled APC for the Slovak Army. President Dąbrowski declared that the group is also going to expand its international cooperation, exemplifying the above with the use of the agreement signed with the German Rheinmetall company, within the scope of developing a joint design of a wheeled APC.

One of the most important moments for us came, when we signed an agreement with the Rheinmetall company, concerning the new, amphibious wheeled armoured personnel carrier.This is the right direction.We will continue our international cooperation with the best companies, creating the new products together.

Wojciech Dąbrowski, President of the PGZ Company

Income of the companies belonging to the Polish Armament Group reached the amount of PLN 5.094 billion, while the net profit was contained in an amount of PLN 226 million, however the above numbers are referring to the financial results of the consolidated defence companies and of the MARS Shipyards & Offshore group. The consolidated financial statement features smaller amounts – respectively, PLN 1.917 billion and PLN 84.8 million. This is due to the fact that the individual companies were included in the Polish Armament Group during the second half of the last year.

PGZ owns majority stakes or shares in 54 companies. The Group currently employs 17.5 thousand persons, another 30 thousand jobs are provided by the affiliated, cooperating companies. The Polish Armament Group gathers together, in total, more than 60 companies. PGZ started its business activities during the International Kielce Defence Fair in 2014, and this year, during the same, annual event, mission statement and strategic directions of development are going to be presented.

(JP) (JG)


  • pgz