The move was confirmed by Deputy Prime Minister and Defence Minister Władysław Kosiniak-Kamysz during a visit to the southern city of Tarnów.
Kosiniak-Kamysz said the investment would allow Zakłady Mechaniczne Tarnów to expand its production capabilities and move to a higher level of arms manufacturing by producing integrated air defence systems.
Under the deal, the government will increase the company’s equity capital by PLN 310 million (EUR 73.3 million, USD 86.2 million) by the end of this year, officials said.
The funds will be used to build a new 8,000-square-metre production facility and buy about 200 new machines, reporters were told.
Kosiniak-Kamysz said the agreement would make ZM Tarnów, which already has a workforce of more than 1,000, the region's largest employer and strengthen its profile nationally and internationally.
Polish Deputy Prime Minister and Defence Minister Władysław Kosiniak-Kamysz speaks to reporters in the southern city of Tarnów on Monday. Photo: PAP/Paweł Topolski
Kosiniak-Kamysz told reporters that the company was already assembling the Pilica and Narew air defence systems for the Polish armed forces and was expected to play a role in boosting the country's drone defence capabilities.
The investment is part of a broader government strategy to strengthen domestic arms production, with the goal of meeting about half of the Polish military's equipment needs through domestic manufacturers and the remainder through allied suppliers.
As part of that effort, the government has also injected capital into producers of 155mm ammunition and other companies within the state-owned Polish Armaments Group (PGZ), including Dezamet, Nitro-Chem and Mesko, Polish state news agency PAP reported.
ZM Tarnów, which is part of the PGZ group, specialises in manufacturing very short-range air defence systems such as the Pilica rocket-artillery system.
(pm/gs)
Source: IAR, PAP