Polish state-run chemical group Grupa Azoty (ATTP.WA) and explosives maker Nitro-Chem have signed a letter of intent to cooperate on the production of explosives, the companies said in a statement on Wednesday.
The cooperation with Nitro-Chem, a unit of state-owned defense group Polska Grupa Zbrojeniowa (PGZ), aims to ensure the continuity of raw material supply chains for explosives and jointly seek funding for a new TNT plant.
Grupa Azoty CEO Andrzej Skolmowski said the company was building a new business segment in high-energy materials and wanted to expand its existing cooperation with Nitro-Chem to include the exchange of technical experience.
"We do not rule out a deeper involvement in the project," Skolmowski said in a statement.
Adam Leszkiewicz, CEO of Poland's largest defence company PGZ, said the company was determined to increase domestic ammunition production capacity as quickly as possible, noting that a project for three new factories was already underway.
