PGZ and Hyundai Rotem sign consortium agreement for K2PL tank production in Poland

By Defence Industry Europe

Polska Grupa Zbrojeniowa (PGZ) and Hyundai Rotem Company have signed a new consortium agreement, paving the way for the delivery of K2PL tanks to the Armed Forces of the Republic of Poland. The PGZ-HRC consortium anticipates the order to be placed by the end of 2024.

 

The newly signed agreement aims to adapt to evolving conditions for future contracts and meet the governmental expectations in both Poland and South Korea. The primary objective of the consortium is to commence negotiations for the production of K2PL tanks in Poland as swiftly as possible.

In 2022, the Armaments Agency and Hyundai Rotem Company inked a Framework Agreement, detailing the delivery of 820 K2 tanks in the K2PL configuration, with 500 units to be produced in Poland. This agreement also includes accompanying vehicles, a logistics package, a training package, ammunition, and support services.

Further advancing their industrial cooperation, a Term Sheet was signed between the Polish and Korean industrial parties in 2023. This document governs mutual industrial regulations and paves the way for significant enhancement of the industrial capabilities of PGZ Group companies.

 

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The parties reaffirmed their existing commitments, with PGZ S.A. taking on the crucial role of coordinating key initiatives related to technology transfer, establishing production, and providing maintenance, repair, and overhaul (MRO) services up to the manufacturer level. PGZ S.A. aims to incorporate Polish components and their localisation in the K2PL tanks, ensuring domestic production of subassemblies and spare parts. This localisation is particularly vital for national security in the face of external threats.

PGZ highlighted the importance of these developments in a recent statement, underscoring the strategic significance of domestic production capabilities for the nation’s defence sector.

 

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