Tens of billions for weapons: Poland demands investment from the US

upday.com 1 month ago
We are offering American companies the offer of co-production of arms and technology transfer, the times of being only a client are over," said Deputy Head of the Ministry of State Assets Konrad Golota on Thursday. He added that the EU SAFE mechanics promoting European manufacture is helping.PAP

Deputy Minister Golota of the Ministry of State Acts went to Washington on Thursday with a clear message for American armed giants: Poland has already spent respective tens of billions of dollars on arms from the United States and is now demanding investment in the another direction. He was accompanied by representatives of the Polish defence manufacture to negociate not contracts, but a real partnership – joint venture, technology transfer and joint arms design.

The delegation met with representatives of the largest arms companies: Lockheed Martin, Northrop Grumman, L3 Harris, Boeing, as well as fresh marketplace players like Anduril and Palantir. Gołota placed a circumstantial offer of cooperation on the table.

«I am here with the defence manufacture to negociate cooperation to put an offer of cooperation for American companies on the table. Investment in Poland, but not 1 where we are a contractor of any simple activities, but where we make partnerships, joint ventures, where technology transfer goes to Poland and where we start designing and building common weapons», said the deputy minister to the Polish media.

From client to Designer

Gołota did not hide that Poland was changing its approach to relations with US arms suppliers. «It is specified a transition from client to designer, from buyer to co-producer (...). We've already spent over a fewer twelve billion dollars in the United States. This is an absolute title to request and anticipate investment in the another direction and not only to be glad that we are a large client who buys a lot (...). These times are over”, he stressed.

Poland is curious in 3 areas of cooperation: service centres for already acquired weapons (Abrams tank engines, Apache chopper engines), production of specialized components (F-35) and co-production of existing weapons specified as rocket systems.

SAFE programme and European requirements

The visit to Washington besides has a European dimension. Gołota presented the requirements of the EU's SAFE programme to American companies – if they want to participate in the European arms market, they must meet certain conditions: 65 percent of production in Europe plus transfer of intellectual property.

"US companies, if they want to participate in this European market, must meet the requirements of SAFE, or 65% of production in Europe plus the transfer of intellectual property. And we are besides putting this offer on the table today, saying that if you work out this process with us, with the signing of the Memorandum of Understanding, with the transition to production, you will be taken by European countries in the SAFE mechanics in the second group, which goes by June next year», explained the Deputy Minister.

The application deadline for the second phase of the SAFE programme is next June.

Response to US Pressure

Golota referred to media reports, including Politico, that U.S. officials, like U.S. Deputy Chief of Diplomacy Christopher Landau, openly expressed discontent with European principles during NATO ministers' meetings. However, the Deputy Minister was firm: «this force will not help».

«The force will not work due to the fact that SAFE has been accepted, the proposals have been submitted, the European countries will strengthen their industrial base and what we are making the Americans aware of is that if they do not enter the SAFE mechanism, the train will leave and their industrial presence in Europe will be smaller and smaller», he warned.

The deputy minister told PAP that he listed rocket systems as an example of cooperation: «For example, rocket systems that we do not produce present in Poland and start producing them together with the Americans for the European market, for 3rd markets, having technology transfer and having this independent production».

Minister Balczun on company management

At the same time, Minister of State Assets Wojciech Balczun gave an interview to Business Insider Polska, in which he referred to the future management of the State Treasury companies. The Ministry is considering extending the word of office of governors and board members without fresh competitions in order not to slow down strategical processes.

«There will be no broom», Balczun said, answering questions about waiting for the alleged "brush of Balczun" in state companies. The minister denied that he was planning mass changes: «There is no specified thing as "the broom of Balczun".

Balczun besides addressed challenges in key companies. JSW needs about PLN 3 billion for liquidity in the coming year. The Azota Group struggles with the problems of the Polymery Police project, where the erstwhile board "scaled" the investment by assuming "unlimited access to inexpensive Russian gas". In the case of Orlen, the minister assessed fresh changes in the board as "the natural right of owner", and the marketplace reacted "neutral or positive".

Robert Kropiwnicki, erstwhile Deputy Minister at the MAP, left the ministry for the decision of the Prime Minister, who wanted to build a "unpolitical board" – Kropiwnicki was an MP.

Note: This article was created utilizing Artificial Intelligence (AI).

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