PGZ Increases Its Share Capital

The Agreement signed by and between the Polish Armaments Group and the Ministry of Treasury, covering the increase of the share capital, has been concluded on 29th December. The said contract is connected to implementation of a project, the aim of which is to expand the manufacturing and overhauls-related capabilities of the companies gathered within the group, in the specialized areas related to vessels and other hardware, which are all destined to be utilized by the Armed Forces.

Increased involvement seen on the part of the Treasury, within the Companies that bear a great significance for the National Security, such as, without any doubt, the PGZ, constitutes an expression of responsibility borne by the government, relating to the sectors that remain significant for the economy. The assets coming from the Fund, to the PGZ, shall be utilized for the purpose of making an investment in modernization of the Polish defence sector.

Minister Henryk Kowalczyk, Chairman of the Standing Committee of the Council of Ministers emphasized the fact that transfer of the assets from the Entrepreneurs Restructuring Fund to the Polish Armaments Group is going to be used, in order to cover the expenses and investment allowing the PGZ to modernize the domestic defence industry. On the other hand, President of the Management Board of the PGZ company, Arkadiusz Siwko, noted that increase of the share capital of the group bears a great significance within the context of participation in the key modernization programmes, pursued by the Polish Army.

It is yet another step we are making towards full integration of the defence industry. Increase of the PGZ’s share capital will enable us to maintain and expand the industrial and technological know-how in the areas of that are of key strategic significance, when it comes to the national security. Moreover, this step will also secure contribution made to the key programmes of the Technical Modernization Plan by the Polish facilities.

The funds received by PGZ, thanks to the fact that the shares have been acquired by the Treasury, shall be used to expand the Group’s capabilities in the field related to the Navy vessels or other hardware utilized by the Army. As a result of that, it is going to be possible to secure the needs of the Polish Armed Forces, when it comes to procurement of vessels, support vessels, as well as when it comes to the operational support of the aforesaid hardware.

Support provided by the Ministry of Treasury for the Polish Armaments Group does not constitute public aid. This is related to finalization of the process, the goal of which is to consolidate the domestic defence industry and protect the basic national security interest.