KGHM Group and PGZ are planning to cooperate

KGHM Group companies signed an agreement on strategic cooperation with PGZ Group companies. The agreement defines possible areas of joint activities in the implementation of research and development, production, and commercial projects, among others. The ammunition and missile area has been identified as a priority.

The declaration of cooperation between the copper industry leader and PGZ is a response to the current geopolitical situation and the speed of fulfillment of orders in the armaments area, including the establishment of the government’s National Ammunition Reserve program. The signatories to the agreement are KGHM and PGZ S.A., as leaders of their respective Groups. The cooperation will take place between the subsidiaries whose operations show such potential.

“KGHM is one of the pillars of the country’s security in terms of raw materials. We produce copper and metals that are crucial in the energy or electronics sectors, but also find application in the defense industry. The cooperation with PGZ - the leader of the Polish armaments sector - opens up new possibilities for the synergy of our operations and will also enable closer cooperation between companies in our groups,” said Tomasz Zdzikot, the CEO of KGHM Polska Miedź S.A.

The copper produced by KGHM is a strategic raw material of the future, used, among others, in solutions that enable the energy transition. The red metal also is of key importance to independence and raw material security. Copper can be found in conductors, electrical wiring, and electronics, and is also used in the arms industry, including in the manufacture of ammunition casings. KGHM is one of the world’s leading producers of non-ferrous metals and is the eighth largest copper producer in the world and the second largest producer of silver.

“One of the important fields of operation of our group is ammunition, which has taken on special importance in view of the war in Ukraine. We have already increased our production capacity in this area, but thanks to our cooperation with KGHM, we have a chance to further increase production. I am glad that both of our groups will work together for the security of Poland at such a sensitive time,” stressed Sebastian Chwałek, the President of the Management Board CEO of PGZ S.A.

The parties to the agreement from the KGHM Group are the following companies: KGHM Polska Miedź S.A., Centrozłom Wrocław S.A., Walcownia Metali Nieżelaznych “ŁABĘDY” S.A., KGHM Metraco S.A., NITROERG S.A., and KGHM ZANAM S.A. On the PGZ Group side, these companies are: Polska Grupa Zbrojeniowa S.A., Mesko S.A., Zakłady Metalowe “DEZAMET” S.A, Zakład Produkcji Specjalnej GAMRAT sp. z o.o., Zakłady Chemiczne Nitro-Chem S.A., and Bydgoskie Zakłady Elektromechaniczne BELMA S.A.