The state Polish Armaments Group (PGZ), the PGZ-owned Military Automotive Works (WZM) and the South Korean firm Hyundai Rotem have signed an agreement to establish a consortium to produce K2 main battle tanks and their components in Poland.

The agreement was signed on Friday at the Bemowo Piskie military training ground near the north-eastern town of Orzysz when President Andrzej Duda and Defence Minister Mariusz Blaszczak were observing a firing exercise of K2 tanks and K9 howitzers purchased from South Korea.

According to PGZ, „setting up of the consortium was necessary for further talks with the Armament Agency (central authority responsible for purchases of weapons and military equipment - PAP) on offering the Polish Army K-2PL tanks, which are to be built as a result of Polish-Korean industrial cooperation.”

PGZ CEO, Sebastian Chwalek said, as cited in the company’s press release, that the establishment of the consortium is „the basis for further talks on the involvement of other PGZ companies as subcontractors in the production of K-2PL tanks.”

Details are to be agreed between PGZ and the Armament Agency.

PGZ and WZM signed an industrial agreement with Hyundai Rotem in late February, defining the main areas of cooperation on K-2PL tanks. The consortium agreement is a continuation of the previous arrangements, it contains details regarding the production, delivery and service of the K2 tanks in the PL version.

The executive agreement for production of K2 tanks concluded in August last year between Poland’s Defence Ministry and the Korean manufacturer provided for the purchase of 180 of the tanks for USD 5.8 billion. According to the framework agreement, which ultimately envisages the purchase of 1,000 of the tanks, 820 of the vehicles ordered at a later stage are to be manufactured under licence in Poland. (PAP)

mk