Almost PLN billion in the Narew programme for PTZ companies

- I'm sorry. In fresh months, key decisions have been taken, thanks to which awaited, modern equipment will scope the Armed Forces of the Republic of Poland. To meet fresh challenges in a reliable way, our defence manufacture needs support in terms of production capacity and infrastructure construction. With the support of the Capital Investment Fund, which is managed by the Minister of State Acts, crucial resources are transferred to the Polish defence industry, developing the technological capacity we will usage for years. This is how we build our potential, technological and industrial sovereignty. We remember that investments in defence are besides investments in production capacity, which is why the Ministry of State Acts is expanding the Polish defence manufacture so that, in accordance with the thought of local content, it provides as much high-class equipment for the Polish armed forces as possible," said Konrad Golota, Deputy Minister of State Acts.

The NAREW programme is implemented by 11 companies that are part of the PGZ Capital Group: PGZ S.A., PIT-Radwar S.A., investigation and improvement Centre Centre of Marine Technology S.A., Huta Stalowa Wola S.A. Branch of Autosan in Sanoku, Jelcz Sp. z o.o., Mesko S.A., PCO S.A., Mechanical Plant “Tarnów” S.A., Military Electronic Works S.A., Military Communications Plant No. 1 S.A., Military Weapons Plant S.A. They make a compatible ecosystem that will build the technological competence of State Treasury companies based on technology transfer (ToT) and cognition transfer (ToK). PGZ S.A., as leader of the NAREW Consortium, is liable for task management, including, among others, negotiation of implementing contracts, coordination of company activities and investment activities, acquisition of finance, reporting and hazard management.

The investment agreements under the Narew programme concern the following investments:
- Military Electronic Works S.A. - Camm-ER together with the production hall – full value of PLN 102,000,000 (total value of the task is PLN 129 444 527). First tranche: PLN 34,3700,000.

Investment task planned to be completed in 2028 The main nonsubjective of the WZE task is to importantly increase the production capacity in the main activity of the Company, i.e. the production, assembly and service of military equipment and weapons (CAMM-ER missiles, command cabins) - entering the direction of modernization of the Polish army, and at the same time to launch the production of fresh anti-aircraft defence systems, including those dedicated to the NAREW program, which translate after the transfer to the SZ of the Polish Republic into an increase in defence capacity of the state.

- Mesko S.A. - Establishing the production capacity of the rocket engine and fragmentary head – full value of PLN 304,440.000 (total value of task 360,300 000 PLN). First tranche: PLN 19,000,000.

The task will be implemented by MESKO S.A. from 2025 to 2030. MESKO S.A., a company which is 1 of the key entities of the PGZ Group, in accordance with its stated purpose, focuses on securing the needs of military equipment of the Armed Forces of Poland through the implementation of key programs and projects. The aim of the task (including the implementation of the NAREW programme) is to prepare the investments essential to get the transfer of rocket engine production technology and make a fresh warhead for the CAMM-ER rocket and supplies of rocket components. In order for the nonsubjective to be achieved, appropriate infrastructure must be prepared.

- OBR CTM S.A. - Construction of the Centre for the Integration of Arms and Systems under the Investment Programme "Development of the OBR CTM S.A. Technology Park" – full value of PLN 8 650 000 (total value of the task is PLN 16 650 000). Only tranche: PLN 8,650,000.

The task will be implemented between 2025 and 2027. Carrying out the task in the Company will let to modernise the existing infrastructure by building a fresh industrial facility and creating a modern, more technologically advanced and flexible working space. In addition, an optimal and flexible production hall will be created, focused on production and integration processes, allowing for easy adaptation to the needs of production and implementation of fresh technologically complex projects.

The task is besides a improvement of production capacity due to the adaptation of space for large-scale products, which will let for more complex projects and increased activity.

This will besides increase the production possible of OBR CTM S.A. to safeguard the needs of the Ministry of Defence, resulting from defence programmes, and support efforts to implement 1 of the key economical elements in the field of national security, linked to strengthening the competitiveness and innovation of the national defence industry.

Resolution of the Council of Ministers on recapitalisation of companies forming part of the PGZ NAREW Consortium
According to Resolution 68 of the Council of Ministers of 25 June 2024 on the recapitalisation of companies forming part of the PGZ NAREW Consortium, the investment is divided into 7 stages (transz recapitalisation) and will be allocated to about PLN 3,888.11 million between 2024 and 2030.

The 7 stages are the individual yearly periods for which expenditure limits for the NAREW programme are set in this resolution. They are as follows:

1) PLN 478,67 million in 2024;
2) PLN 930.17 million in 2025;
3) PLN 1247.04 million in 2026;
4) PLN 863.03 million in 2027;
5) PLN 233.13 million in 2028;
6) PLN 46.27 million in 2029;
7) PLN 89.80 million in 2030.