ZM Tarnow Secures €71m Capital Injection to Expand Production and R&D Capacity

Zakłady Mechaniczne “Tarnów” S.A. (ZM Tarnów), part of the Polska Grupa Zbrojeniowa (PGZ), has secured PLN 309.6 million (approx. €71 million) in state-backed financing to significantly expand its production, service, and research-and-development capabilities.

The funding agreement and accompanying share issuance were formally signed at ZM Tarnów’s facilities by PGZ CEO Adam Leszkiewicz and Vice President Arkadiusz Bąk, together with ZM Tarnów CEO Robert Sadowski and Management Board Member Tadeusz Kwiatkowski. The capital comes from Poland’s Capital Investment Fund (FIK) and will be channelled through a capital increase at PGZ before being injected into ZM Tarnów.

Industrial expansion aligned with air defence programmes

The strategic investment project—focused on scaling production and strengthening long-term contract execution—will finance the construction of new production, warehouse, and service halls, as well as the modernisation of existing infrastructure. A major component of the programme includes the acquisition of approximately 200 new machines, reinforcing both serial production and advanced manufacturing capabilities.

Speaking at the ceremony, Polish Deputy Prime Minister and Minister of National Defence Władysław Kosiniak-Kamysz underlined the importance of domestic industrial capacity:

“This investment strengthens Poland’s defence sovereignty and supports our goal of producing at least 50% of military equipment domestically. ZM Tarnów is reaching new production thresholds and is becoming a key industrial hub not only for components, but for complete air defence systems.”

ZM Tarnów is directly involved in the assembly of Pilica+ and Narew air defence systems, positioning the company as a critical supplier within Poland’s layered air and counter-UAS defence architecture.

Three core investment pillars

The programme is structured around three main areas:

• Expansion of service, repair, training, and production capabilities at the R&D Centre
• Increased production capacity within the manufacturing division
• Significant enlargement of warehouse and logistics infrastructure

According to ZM Tarnów CEO Robert Sadowski, the investment will materially improve the company’s readiness to deliver both current and future long-term contracts for the Polish Armed Forces and export customers.

Strengthening PGZ’s industrial base

PGZ CEO Adam Leszkiewicz stressed that the Capital Investment Fund financing accelerates infrastructure and technology upgrades across the group, boosting competitiveness, innovation, and production sovereignty. The investment also reinforces PGZ’s role as a cornerstone of Poland’s defence-industrial ecosystem.

A key player in Poland’s defence industry

With more than a century of industrial heritage, ZM Tarnów is one of Poland’s most recognisable defence manufacturers. Its portfolio includes very-short-range air defence systems, small arms, remote weapon stations, mortars, grenade launchers, and containerised training solutions. The company is also expanding capabilities in counter-drone systems, modernised weapon platforms, and advanced materials and electronics.

The €71 million capital injection marks one of the most significant recent investments at ZM Tarnów, further cementing its role as a strategic production and export asset within Poland’s rapidly expanding defence sector.