WARSAW (Reuters) -Poland has signed a second multi-billion dollar deal with South Korean industrial and defence group Hyundai Rotem for the supply of battle tanks, as Poland and NATO allies look to beef up their defences following Russia’s invasion of Ukraine.
As a leading voice calling for members of NATO to spend more on defence, Poland, which borders Ukraine, Russia and Belarus, has allocated 4.7% of gross domestic product to boosting its armed forces in 2025 with a pledge to increase to 5% in 2026.
The latest agreement to buy 180 tanks comes after months of negotiations and is Poland’s second major deal with the South Korean company, having in 2022 agreed the purchase of a first batch of 180 K2 tanks.
But this new agreement involves a large element of manufacture in Poland as it looks to expand its domestic defence industry.
No value was given for the new contract but in early July Hyundai Rotem said in a regulatory filing it was worth $6.5 billion.
While the first contract focused on Korean-made vehicles that could be quickly supplied as Poland moves swiftly to boost its military, the second batch grants the Korean arms maker a more permanent foothold in Europe.
The Polish Ministry of Defence said on Friday 61 of the tanks in the latest order will be produced at a plant in Gliwice in southern Poland owned by Bumar-Labedny, a company that produces heavy equipment, including for the military.
“We wanted to … send a clear signal that we are building arms plants throughout Poland, that technology transfer applies to everyone, and that the arms industry is the driving force of the Polish economy,” Polish Defense Minister Wladyslaw Kosiniak-Kamysz said in a speech broadcast on YouTube following the signing of the contract.
The first deliveries of tanks to Poland are planned for the next year, and Polish production is planned for 2028-2030.
The agreement signed also covers the delivery of support vehicles and a training, service, and repair package.
(Reporting by Pawel Florkiewicz; Editing by David Holmes)
