KGHM will provide copper for Polish ammunition
The Polish Armaments Group (PGZ) will be able to use copper in the production of coating for ammunition.
KGHM and PGZ signed an agreement on strategic cooperation, including on production projects with a priority of ammunition and missiles. This is a response to geopolitical challenges and the potential synergy of the work of the respective daughter companies.
„KGHM is one of the pillars of the country’s raw material security. We produce copper and metals, which are of key importance in the energy and electronics sectors, as well as in the arms industry. Cooperation with PGZ, the leader of the Polish armaments sector, opens up new opportunities for synergy and will enable closer cooperation also between companies belonging to our capital groups,” said Tomasz Zdzikot, president of KGHM Polska Miedź.
„Ammunition is one of the most important domains at our Group, and considering the war in Ukraine it has become even more important. We have already increased our production capacity in this area, but thanks to cooperation with KGHM we have a chance to grow it even higher. I am glad that both our capital groups will cooperate for the security of Poland during such a sensitive period,” said Sebastian Chwałek, President of PGZ.
The parties to the agreement with the KGHM Group are: KGHM Polska Miedź S. A., Centrozłom Wrocław S. A., Non-Ferrous Metal Rolling Mill „ŁABĘDY” S. A., KGHM Metraco S. A., NITROERG S. A. and KGHM ZANAM S. A. On the side of GK PGZ are the following companies: Polska Grupa Zbrojeniowa S. A., Mesko S. A., Zakłady Metalowe „DEZAMET” S. A., special production plant GAMRAT SP. z o. o., Zakłady Chemiczne Nitro-Chem S. A., Bydgoskie Zakłady Elektromechaniczne BELMA S. A.
KGHM / Wojciech Jakóbik
Orlen Group acquires another company
Orlen Projekt has signed an agreement with Energa to acquire a 100 percent stake in Energa Invest, an engineering services company, which will strengthen this business line and take full advantage of the opportunity offered by the PLN 320 billion investment program implemented until 2030.
” We are consolidating another business area of the Orlen Group in order to fully realize the synergies resulting from the construction of a strong multi-energy concern. The integration of project companies will enable them to effectively engage in investments related to the implementation of the ORLEN2030 strategy. This is an opportunity for new, attractive orders, knowledge transfer and competence acquisition, which can also be used outside the Orlen Group. We are creating a strong player that will be able to effectively compete in the market of design services not only in the country but also abroad,” says Daniel Obajtek, CEO of Orlen.
The acquisition of 100 percent of Energa Invest shares strengthens the Orlen Projekt Capital Group, which already includes the Orlen Projekt companies, as well as Orlen Projekt Česká Republika, a company established in April 2023 in the Czech Republic. In the next step, it is also planned to include PGNiG GAZOPROJEKT in the Group. The combination of project companies will increase their potential and the chance of implementation of, among others, a wider range of EPC projects (Engineering, Procurement, Construction) and will provide new development opportunities for employees.
” As a result of the merger, Energa Invest will develop. Jobs will be preserved, there are also no plans to relocate employees to other cities, and the current terms of contracts with employees will not change,” says Marcin Kasza, President of the Management Board of ORLEN Projekt.
After the acquisition of 100 percent stake in Energa Invest, ORLEN Projekt Capital Group will have more than 300 employees.
Energa Invest is a project company operating in the field of conventional energy, water, wind, photovoltaic and cogeneration sources. The company’s most important focus areas inclue design of overhead and cable lines, power stations, hydrotechnical structures, development of technical concepts, feasibility studies, functional and utility programs, design of generation sources and provision of services of the general contractor and contract engineer during construction works.
Orlen Group / Jacek Perzyński
Government provides guarantees to keep coal alive and kicking
Last Friday, the Sejm Committee on Energy, Climate and Assets introduced legislative amendments to the draft law on guarantees of the State Treasury for NABE obligations. The amount of the guarantee is expected to reach PLN 70 billion, and the agency will facilitate the development of RES for Polish energy companies.
It should be mentioned that in December 2022, the Minister of State Assets, representatives of energy companies and trade unions signed a social agreement accompanying the creation of the National Energy Security Agency. The role of the agency will be to maintain the coal-fired capacity necessary for reasons of energy security of the state despite their lack of profitability. This is to allow these companies to gain investment opportunities for other types of sources, such as renewables.
The project provides for covering guarantees of three groups of financial instruments for NABE: a renewable loan to finance current activities, including the purchase of CO2 emission allowances with a renewable limit – at the level of PLN 15 billion; long – term loans from energy groups, in an amount estimated at PLN 9.9 billion; and securing timely transactions for the purchase of certain financial instruments-CO2 emission allowances, and foreign exchange risk hedging instruments with a maximum funding limit of PLN 44 billion. The project covers liabilities with guarantees from the beginning of the fourth quarter of 2023.
The guarantee protection will last 8 years from the moment NABE will be launched. The guarantees of the State Treasury are to cover 70 percent of these financial obligations. The state budget is to receive PLN 7.6 billion within 10 years thanks to the commission for granting the guarantees.
NABE will receive coal-fired generation assets from state-controlled energy companies. The creation of NABE is to take place in two stages. In the first, the State Treasury will acquire from companies: PGE, Taurona, Enea and Energa their subsidiaries engaged in the generation of electricity in conventional coal-fired power plants, i.e. PGE Górnictwo i Energetyka Konwencjonalna, Tauron Wytwarzanie, Enea Wytwarzanie, Enea Elektrownia Połaniec and Energa Elektrowne Ostrołęka.
The companies will then be consolidated under PGE Górnictwo i Energetyka Konwencjonalna (GiEK). This will be done thanks to the State Treasury contributing stocks or shares of these companies to increase the share capital of PGE Górnictwo i Energetyka Konwencjonalna. GiEK will then function as NABE.
Polish Press Agency / Jacek Perzyński