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Dual-Use Production Could Strengthen Poland’s Economy
🇵🇱 Poland /Economy & Trade

Dual-Use Production Could Strengthen Poland’s Economy

From Rzeczpospolita · () Polish

Translated from Polish and summarized by DistantNews. Read the original for the full story.

At a glance

Interview Named sources Context piece
  • mBank says it has seen a clear increase in transactions involving companies entering or expanding in the defense sector.
  • Demand has grown especially for guarantees and investment financing as firms build production capacity for military contracts.
  • The dual-use supply chain includes defense manufacturers, civilian companies and subcontractors producing items such as drones, clothing and other equipment.

Polish companies moving into defense production are seeking more than working-capital loans. According to Adam Pers, mBank’s vice president for corporate and investment banking, the strongest demand now concerns guarantees and investment financing for expanded production capacity.

Pers said mBank has recorded a clear rise in defense-related transactions over recent months. The bank works with established manufacturers that already hold the required certifications, as well as companies entering what he called “soft dual-use,” where certification remains at an early stage.

The shift is also drawing in firms that previously served civilian markets. Pers cited aluminum foundries with spare capacity, partly because of a slowdown in German industry, as examples of companies now seeking defense contracts. The business opportunity extends beyond direct suppliers. A substantial share of contracts carried out by Poland’s PGZ is expected to go to subcontractors, with their combined value reaching several billion zlotys.

Yes, for several months we have had clearly more transactions. Demand for guarantees is growing the fastest.

— Adam PersPers described the increase in defense-related banking activity.

Some smaller companies are facing a sharp increase in orders. Pers described a business with annual revenue of 50 million zlotys that secured a 500 million zloty contract. Meeting it would require a new factory and additional employees. The contract itself may need relatively little financing, he said, but creating the capacity to deliver it requires major investment.

The interview presents dual-use production as extending well beyond traditional arms manufacturing. Potential areas include frigates, drones, thermal clothing, wind farms and data centers. mBank also wants new capacity to serve civilian customers in the future, while exports within NATO could offer a simpler route than sales outside the alliance.

We expected demand mainly for working-capital financing, but two components proved crucial: guarantees and investment financing connected with expanding production capacity.

— Adam PersHe explained how companies’ financing needs differed from the bank’s initial expectations.
About this summary

Originally published by Rzeczpospolita in Polish. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

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