16 Aug 2023
Babcock and PGZ SA pen Framework Agreement to lead to Joint Venture
Following on from our Strategic Cooperation Agreement signed in March 2022, Babcock and PGZ SA, the Polish Armaments Groups – one of the largest defence groups in Europe, have entered into a Framework Agreement with the intention of forming a Joint Venture (JV) that further strengthens the Strategic Partnership between the two companies. When enacted the JV will see both companies work more closely together to deliver Poland’s MIECZNIK frigate programme and on the potential development of broader international opportunities.
Poland’s Miecznik programme is based on Babcock’s Arrowhead 140 Frigate design, and Babcock and PGZ plan to deliver this programme by combining their shipbuilding and equipment support capabilities. The companies will also seek opportunities to partner for other naval and wider defence programmes by optimising resources, capabilities and infrastructure across both organisations.
Currently going through latter stage commercial processes, the new Joint Venture organisation will be a further boost to UK and Polish industry collaboration and wider prosperity generation, following the recent signing of the 2030 Strategic Partnership between the UK and Poland which seeks to deepen policy, security and defence cooperation.
David Lockwood, CEO Babcock said: “In today’s world, sovereign defence has never been more important. Our planned Joint Venture with PGZ continues to build on our increasingly close relationship, enabling us to consolidate the core capabilities of both organisations to benefit our current and future customers.
“What we do matters more than ever, and today we are proud to stand alongside our Polish partner as they cut the first steel on this national shipbuilding programme.”
Sebastian Chwałek, CEO PGZ S.A. said:
“The Framework Agreement concluded today is built on the strong and fruitful relationship between PGZ and Babcock. Over the last few years, we have established a strategic partnership between Poland and the UK. Once concluded, the Joint Venture will not only support the MIECZNIK programme, but also work as a platform for future naval shipbuilding capabilities. Strengthening the potential of the Polish Navy is an absolute priority for us, but in the long term, together with Babcock we also plan to create export opportunities. Cooperation in the development of naval forces is also an action to strengthen the NATO, of which both our countries are extremely important representatives.”