At least 80 percent of the funds Poland applied for under the EU’s SAFE loan mechanism are expected — according to government announcements — to be directed to the domestic defense industry. The government hopes the program will translate into new orders for Polish factories, including contracts from other European capitals. “Our armed forces cannot be the only customer for what we produce,” says Konrad Gołota, Deputy Minister of State Assets.
“The SAFE program is structured in such a way that contracts will be signed this year, and deliveries must be completed by 2030. The first deliveries will take place already this year, which means the effects of these orders will become visible quickly,” Konrad Gołota, who oversees the domestic defense industry at the ministry, told Newseria news agency.
The SAFE mechanism (Security Action for Europe) is a new EU loan instrument aimed at increasing the defense capabilities of member states and strengthening the European industrial base of the arms sector. In Poland, it has become the subject of heated debate, mainly between the government and the opposition, as well as between the government and the Presidential Chancellery.
Government representatives argue that SAFE represents a major opportunity for the domestic defense industry, which has been implementing a broad modernization program in recent years. This includes investments in new production lines, industrial infrastructure, and the development of technological competencies, particularly in areas considered crucial for national security.
“After years of stagnation, we are now investing in all companies within our defense industry, developing our competencies and industrial sovereignty — which should form the foundation of the government’s economic policy,” the Deputy Minister emphasizes. “As an example, I can point to PGZ Naval Shipyard, which is currently building three multi-role frigates and the ‘Ratownik’ rescue vessel. It employs 1,000 people today and will eventually employ 1,300. Just three years ago, it was under the control of a bankruptcy trustee and was set to be closed.”
According to the Ministry of State Assets, the Polish Armaments Group (PGZ) has advanced to 51st place in the global SIPRI ranking of the world’s largest arms producers. Over the past year, the group has signed major contracts. The government points out that PGZ serves as an integrator of the domestic defense industry and is leading a consolidation and reorganization process involving 70 companies within the group.
“We are building additional production lines. We have acquired capabilities and are constructing three 155 mm ammunition factories. We are delivering the Borsuk infantry fighting vehicle, for which a supply contract was signed last year. We are building international partnerships and have secured the possibility of long-term production of our flagship product, the Rosomak. At the Radom weapons factory, a new production hall has been opened. That is where the Grot rifle is manufactured, which is used by our armed forces,” Konrad Gołota lists.
The Ministry of State Assets reports that PLN 2.4 billion from the Capital Investment Fund, managed by the ministry, has been allocated to the construction of three modern artillery ammunition plants, primarily producing 155 mm caliber rounds. Funds from the same source have also supported modernization programs, including projects related to land equipment and air defense systems.
“A strong point of the Polish defense industry is that we are already producing equipment that has been successfully used in Ukraine. These include the Piorun air-defense system, the Krab self-propelled howitzer, and other equipment we supply to Ukraine. We deliver what our armed forces need today — equipment tested on the battlefield — and in some cases, such as the Piorun, there is even a waiting line,” the Deputy Minister notes.
One of the key export products of the Polish defense industry remains the Piorun missile system. According to ministry data, Mesko’s production line recently completed its 3,000th unit, and additional export contracts have recently been signed with Belgium, Sweden, Norway, and the United States.
“What we need to work on is building partnerships, strengthening our offer, and rebuilding exports. Our armed forces cannot be the sole recipient of what we produce,” the Deputy Minister announces. “The SAFE mechanism is an excellent tool in this regard because it encourages joint procurement. We currently have a full list of inquiries to the Polish industry about what it can deliver and within what timeframe. This list will be analyzed. Additionally, together with Minister Magdalena Sobkowiak, the government’s plenipotentiary for SAFE, I intend to visit a number of European capitals to further promote purchases from the Polish defense industry. Poland intends to move from being merely a customer to becoming an exporter as well.”
