PGZ subsidiaries to invest 1.3 billion zloty in Racibórz plants, with 386 million zloty in state support

In brief

• Three PGZ companies, Jelcz, Rosomak and Bumar-Łabędy, will invest close to 1.3 billion zloty.
• The government will provide 386 million zloty in support, according to Finance Minister Andrzej Domański.
• The investment will convert the former Rafako plant in Racibórz into factories for military vehicles.

State backing for Jelcz and Rosomak production

Decisions on support for the investments of three companies in the Polish Armaments Group (PGZ) were announced on Wednesday at the new Jelcz/Rosomak factory in Racibórz. The companies are Jelcz, Rosomak and Bumar-Łabędy. Their combined investment value is close to 1.3 billion zloty (1,3 mld zł na inwestycje zbrojeniowe. Jelcz, Rosomak i Bumar-Łabędy z rządowym wsparciem – Rzeczpospolita) (Dawne zakłady Rafako zmienią się w fabrykę dla wojska. Inwestycje za 1,3 mld zł – Bankier.pl).

Government package

According to Finance and Economy Minister Andrzej Domański, the state will provide 386 million zloty to cover these projects (Setki milionów wsparcia dla PGZ. Minister zapowiada inwestycje warte miliardy – Business Insider Polska). He also said the package includes tax relief (Spółki PGZ zainwestują 1,3 mld zł na terenach po Rafako. Powstanie nowa fabryka Jelcza i Rosomaka – Puls Biznesu).

Former Rafako site repurposed

The investment will use the former Rafako plant in Racibórz, a site that once made equipment for the power industry. It will be converted into factories for Jelcz military trucks and Rosomak armoured transporters (Rafako upadło, teraz wkracza wojsko. Jelcz i Rosomak ruszą z produkcją – WNP.pl). A new plant with a value of more than 570 million zloty is planned there, and it is expected to employ more than 500 people (Reaktywacja w fabryce Rafako. Za prawie 600 mln zł rozkręcą dużą produkcję dla wojska – WNP.pl).

Criticism over spending priorities

Some commentators argue the funds favour state-owned arms production over the private sector. One view published by Rzeczpospolita holds that Polish private industry receives much less help and that more money should go to research, development and innovation (Kolejne 400 mln zł dla państwowej zbrojeniówki. Czy to na pewno dobra inwestycja? – Rzeczpospolita).

Key figures

• Combined investment value: about 1.3 billion zloty
• State support: 386 million zloty (Wsparcie do inwestycji spółek PGZ. Łącznie będzie to nawet 386 mln zł – gazeta.pl)
• Planned Racibórz plant value: over 570 million zloty
• Expected jobs at the new plant: more than 500

Read also

• Rafako Site in Racibórz Shifts to Military Production for Jelcz and Rosomak