The objective of the Narew Program is to deliver to the Polish Armed Forces properly integrated components for the NAREW short-range air defense missile systems, together with training, a logistics package, and the establishment and maintenance of industrial capabilities. As a result, Poland’s industrial capacity in the field of missile technologies, life-cycle support of armaments, and further product development will be established.
/ Photo: Polish Armaments Group
“This is a very important moment for the companies of the Polish Armaments Group. The signing of today’s agreements makes it possible to transfer financial resources from the Capital Investment Fund, which means that we have completed all tasks assigned to us and that execution of the financial plan has reached 100%. As a result, investment planning within the PGZ Group becomes even more stable and predictable, which is of particular importance in today’s environment. I would like to thank the Ministry of State Assets for its effective cooperation and understanding of the needs of the defense sector, which has accelerated significantly in recent times, along with all PGZ investment and financial processes. I would also like to thank the management boards of the companies for their commitment to the implementation of the Narew Program,” said Adam Leszkiewicz, President of the Polish Armaments Group.
“In recent months, key decisions have been made thanks to which long-awaited, modern equipment will be delivered to the Armed Forces of the Republic of Poland. In order to meet new challenges in a reliable manner, our defense industry requires funding to expand production capabilities and build infrastructure. Thanks to support from the Capital Investment Fund, administered by the Minister of State Assets, substantial resources are being directed to the Polish defense industry, developing technological capabilities from which we will benefit for years to come. This is how we build our potential, technological sovereignty, and industrial independence. We remember that investments in defense are also investments in production capacity; therefore, the Ministry of State Assets is expanding the Polish defense industry so that, in line with the local content concept, it delivers as much high-class equipment as possible to the Armed Forces of the Republic of Poland,” said Konrad Gołota, Deputy Minister of State Assets.
The NAREW Program is being implemented by 11 companies belonging to the PGZ Capital Group: PGZ S.A., PIT-Radwar S.A., Ośrodek Badawczo-Rozwojowy Centrum Techniki Morskiej S.A., Huta Stalowa Wola S.A. Autosan Branch in Sanok, Jelcz Sp. z o.o., Mesko S.A., PCO S.A., Zakłady Mechaniczne “Tarnów” S.A., Wojskowe Zakłady Elektroniczne S.A., Wojskowe Zakłady Łączności No. 1 S.A., and Wojskowe Zakłady Uzbrojenia S.A. Together they form a compatible ecosystem through which the technological competencies of State Treasury companies will be developed based on technology transfer (ToT) and knowledge transfer (ToK). PGZ S.A., as the leader of the NAREW Consortium, is responsible for project management, including, among other things, negotiating execution contracts, coordinating company activities and investment activities, securing financing, reporting, and risk management.
Investment agreements under the Narew Program cover the following projects:
– Wojskowe Zakłady Elektroniczne S.A. – CAMM-ER together with a production hall – total funding amount: 102,000,000 PLN (total project value: 129,444,527 PLN). First tranche: 34,370,000 PLN.
The investment project is planned for completion in 2028. The primary objective of the WZE project is a significant increase in manufacturing capabilities within the Company’s core business, i.e., the production, assembly, and servicing of military equipment and armaments (CAMM-ER missiles, command cabins), aligned with the directions of modernization of the Polish Armed Forces, as well as the launch of production of new air defense systems, including those dedicated to the NAREW program, which, once delivered to the Armed Forces of the Republic of Poland, will enhance the country’s defense capabilities.
– Mesko S.A. – Establishment of production capabilities for a rocket motor and a fragmentation warhead – total funding amount: 304,440,000 PLN (total project value: 360,300,000 PLN). First tranche: 19,000,000 PLN.
The project will be implemented by MESKO S.A. in the years 2025–2030. MESKO S.A., one of the key companies within the PGZ Group, focuses, consistent with its designated role, on meeting the equipment needs of the Armed Forces of the Republic of Poland through the implementation of key programs and projects. The objective of the project (including implementation of the NAREW program) is to prepare the investments necessary to obtain a technology transfer for rocket motor production and to develop a new warhead for the CAMM-ER missile, as well as to deliver missile components. Achieving this objective requires the preparation of appropriate infrastructure.
– OBR CTM S.A. – Construction of a Weapon and Systems Integration Center under the investment program “Expansion of the OBR CTM S.A. Technology Park” – total funding amount: 8,650,000 PLN (total project value: 16,650,000 PLN). Single tranche: 8,650,000 PLN.
The project will be implemented in the years 2025–2027. Its execution will enable modernization of the existing infrastructure through the construction of a new industrial facility and the creation of a modern, more technologically advanced, and flexible working space. In addition, an optimal and flexible production hall focused on manufacturing and integration processes will be created, allowing for easy adaptation to production needs and the implementation of new, technologically complex projects.
The project also includes the development of production capabilities through adaptation of space for large-size products, which will make it possible to carry out more complex projects and increase the scale of operations. As a result, this will also increase the manufacturing potential of OBR CTM S.A. to meet the needs of the Ministry of National Defense arising from defense programs and will support efforts related to the implementation of one of the key elements of economic activities in the sphere of national security, associated with strengthening the competitiveness and innovativeness of the domestic defense industry.
Resolution of the Council of Ministers on the recapitalization of companies belonging to the PGZ NAREW Consortium.
Pursuant to Resolution No. 68 of the Council of Ministers of June 25, 2024, on the recapitalization of companies belonging to the PGZ NAREW Consortium, the investment is divided into seven stages (recapitalization tranches), with approximately 3,888.11 million PLN allocated to it in the years 2024–2030.
The seven stages represent individual one-year periods, for which spending limits for the NAREW program were set in the resolution, as follows:
1) 478.67 million PLN in 2024;
2) 930.17 million PLN in 2025;
3) 1,247.04 million PLN in 2026;
4) 863.03 million PLN in 2027;
5) 233.13 million PLN in 2028;
6) 46.27 million PLN in 2029;
7) 89.80 million PLN in 2030.
Based on press release