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Polska Grupa Zbrojeniowa signed cooperation agreements with Korean arms manufacturers

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Polska Grupa Zbrojeniowa signed agreements with Korean armaments manufacturers on cooperation in the production of K2 tanks and K9 self-propelled howitzers, PGZ announced on Friday.

The tanks in the target K2PL version are to be produced in the Military Automotive Works in Poznań. In order to start the final assembly and later the production of K9 howitzers in Poland, a consortium of Hanwha Aerospace and Huta Stalowa Wola was established. The document also concerns the conditions of export cooperation.

Equipment manufacturing arrangements

As the Group pointed out, the conclusion of the agreements “is the result of several months of dialogue with the South Korean side”, and the signing of the documents was preceded by another round of negotiations. The result of talks with Hyundai Rotem Company is the so-called Term Sheet – a document defining the principles of industrial cooperation between PGZ and Wojskowe Zakłady Motoryzacyjne, which are part of the Group, and the South Korean partner in the production, supply and maintenance of K2 tanks in the PL version. “It was agreed that the joint production of K-2PL tanks and accompanying vehicles on a tracked chassis will take place at the Military Motor Works in Poznań. The scope of industrial capabilities that will be transferred to WZM and other PGZ companies has also been specified, including tank assembly, creation of in the production of hulls and turrets, production of hydropneumatic suspension, production of the cannon assembly and autoloader and other selected components of the tank.

Polish-Korean consortium

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The document also defines the technical and infrastructural conditions necessary for the production and provision of maintenance, repair and maintenance services in Poland throughout the life cycle of the tank. It also agrees on the terms of the license necessary for the production of tanks for the Polish Armed Forces and the terms of export cooperation. The agreement with Hanwha Aerospace concerns the establishment of a Polish-Korean consortium for the production of K9PL gun-howitzers. The Polish side is represented in it by PGZ SA and Huta Stalowa Wola SA “As a result of the agreement, the issues related to the establishment of the production potential of K9PL howitzers at HSW and the possibility of carrying out the polonization process for parts and components used for the planned production were clarified,” PGZ said in a release. The first stage includes the integration and final assembly of K9PL gun-howitzers, and the second stage is the production of K9PL gun-howitzers at HSW plants.

According to PGZ’s announcements, the consortium will conduct further talks to detail the division of tasks, mainly in terms of establishing the production and service potential, repairs and overhauls at HSW, necessary for the performance of the executive contract, and post-warranty services.

Framework agreement from July 2022

In July last year, the Ministry of National Defense concluded a framework agreement for the purchase of 672 Korean 155 mm K9A1 tracked howitzers and its Polonized K9PL development version with accompanying vehicles, a training and logistics package, ammunition supplies and technical support. The framework contract for the purchase of K2 tanks provides for the purchase of 1,000 of these tanks. In August, an executive contract was signed for 212 howitzers worth $2.4 billion, deliveries are scheduled for 2022-26. The executive contract for K2 tanks provides for the purchase of 180 of these tanks for USD 5.8 billion. According to the framework agreement, 820 tanks ordered at a later stage are to be produced under license in Poland.

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Main photo source: Tomasz Waszczuk/PAP



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