MSPO 2016: PGZ and Leonardo Sign Letter Of Intent

During this year’s edition of the Polish MSPO Defence Exhibition which was organized in Kielce, conclusion of a letter of intent concerning the long term partnership in the defence market took place, as a relevant agreement has been signed by and between the Polish Armaments Group and the Italian Leonardo-Finmeccanica company. The letter of intent in question assumes that the Parties would be bound to cooperate within the global sphere related to defence industry. This is going to constitute a precedent, within the good Polish-Italian relations established between the defence industries of both nations. The cooperation is to cover virtually all aspects of operation between the two companies, and it is not going to be limited down to simple acquisition of armament and ordnance, manufactured by either one of the partners.

Thanks to the present arrangement, the Italian Leonardo company will support PGZ with its products and technologies, while the Polish Armaments Group will cooperate with Leonardo, when it comes to industrial and logistical activities.  The Letter of Intent assumes that a technology transfer for the Polish Armaments Group would take place, in order to generate a significant activity in the high tech area of the market. Consequently, numerous jobs would be created at both companies, during the upcoming years. The document is also to reinforce the position of both companies within the global marketplace. According to Mauro Moretti, President and General Director at Leonardo, the agreement opens a new era in the industrial relations between Italy and Poland, in the defence and security area.

PGZ’s President, Arkadiusz Siwko, emphasized the fact that the letter of intent will make it possible to examine and define the fields of cooperation, for the purpose of creating products that would meet the requirements of the Polish and European users. Siwko also noted that cooperation is to cover both the research and development initiatives, as well as the manufacturing processes. The letter of intent signed with Leonardo-Finmeccanica allows us to explore and define the areas of potential industrial cooperation related to a wide variety of products which would meet the requirements of the Polish, as well as of the European market (...) We will be making efforts to exchange know-how and technologies, in order to have an ability of cooperating within the scope of research, development and production – as it was stated by Arkadiusz Siwko, President of the Board of the PGZ S.A. Company.

Bartosz Kownacki, Secretary of State at the Polish Ministry of Defence, who attended the event during which conclusion of the letter of intent was announced, noted that even though the relationship between Poland and Italy has always been good, constructing and establishing the economic cooperation is always related to hard work. At the same time, Kownacki wished the Presidents and employees of both companies that collaboration takes the best shape that could be possibly achieved. This would happen due to the real mutual benefits for the citizens of both nations who would get jobs, while Polish and Italian economies would have a chance for a quick expansion. Domenico Rossi, representing the Italian MoD at the event noted that establishing a connection is important, since it constitutes a confirmation of the fact that the collaboration seen so far would be continued. This would be a contribution to making the Italian-Polish relationship stronger, within all dimensions. Ensuring that politicians in both countries are close to the problem area related to development of the defence industry. 

Cordial relations between the Poles and the Italians make me very happy. I am deeply convinced that not only do the years of Leonardo’s presence in Poland mean that our mutual trust is deepened, but the said relationship also entails a number of tangible benefits. Benefits for both nations and, above all, for the people who will get better jobs, and who will get a chance to develop. I am certain that collaboration between the Polish Armaments Group and Leonardo-Finmeccanica would also create positive ramifications for the Polish and Italian economies.

The first results of collaboration are to be well visible during the next year’s edition of the MSPO event in Kielce. Both companies see numerous opportunities within the operations concerning the areas of electronics, air and land platforms, UAVs or helicopters and related services. In the latter area, the memorandum assumes that cooperation would be established for the purpose of offering joint programmes on the Polish and international markets. In the eyes of the Italian partners, Poland plays an important role in Europe, hence cooperation with the leader of the Polish defence industry is to have a prospective dimension. 

The letter of intent covers, among other issues, the area related to procurement of the M-346 Master AJT aircraft, including the ground-based training and simulation systems for the unit stationed in Dęblin, as well as the issue of procurement of the Miecznik-class coastal defence vessels and Czapla patrol minehunters for the Polish Navy.