Poland plans defence production at bankrupt energy plant: PM
Poland’s prime minister said on Tuesday that military truck maker Jelcz would open new production lines at the bankrupt Rafako energy plant in the southern city of Racibórz, part of a wider effort to expand the country’s defence manufacturing base.
Polish Prime Minister Donald TuskPhoto: PAP/Jarek Praszkiewicz
During a visit to the site, Donald Tusk said the investment project was essential for Poland’s armed forces, which rely heavily on Jelcz vehicles.
Jelcz is owned by the state-controlled Polish Armaments Group (PGZ).
“This is a well-thought-out, profitable business plan, one that directly strengthens Poland’s security,” Tusk told reporters.
“Practically everything that moves in the Polish military is a Jelcz,” he added.
The prime minister said the new production line would provide more than 500 jobs and stability for local workers.
“This will be defence production, which ensures a very stable future,” Tusk said.
“The fate of the people working here—and, in a way, the fate of the city of Racibórz—will no longer depend on volatile market conditions or unpredictable owners,” he added.
Rafako, once a major player in Poland’s energy sector and one of Europe’s largest boiler producers, was declared bankrupt earlier this year.
In April, the government announced a PLN 700 million (EUR 165 million, USD 190 million) support package through the Industrial Development Agency (ARP) to help rescue key assets.
To take over Rafako’s main facilities, the ARP joined forces with state-owned firms Towarzystwo Finansowe Silesia and Polimex Mostostal to create Racibórz Component Factory (RFK), which is expected to operate in the defence sector.
PGZ CEO Adam Leszkiewicz said on Tuesday that a letter of intent had been signed to acquire and repurpose Rafako’s properties.
The group plans to purchase five industrial halls ranging from 1,500 to 2,000 square metres through a tender process, state news agency PAP reported.
The modernisation and adaptation of the Racibórz facilities will be financed under Poland’s Narew air defence programme, aimed at strengthening the country’s air defence capabilities in the wake of Russia’s invasion of neighbouring Ukraine.
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Source: IAR, PAP, TVP Info
