Exports constitute up to 15% of Poland’s defence industry, with the Middle Eastern and developing countries being the main export hubs, according to a report by Strategic Defence Intelligence (SDI).
Titled ‘Future of the Polish Defense Industry – Market Attractiveness, Competitive Landscape, and Forecasts to 2022’, the report analyses the current and future import and export scenario in Polish defence industry.
Poland mainly exports aircraft, missiles and armoured vehicles, but relies on the US, Germany, Finland, Italy, Norway, Spain, Sweden, France and the UK for the import of advanced arms and ammunitions. The US emerged as the single biggest export destination during 2012-2016, accounting for 66.2% of Polish defence exports, although Asia is the country’s main export destination.
Many Polish defence firms find it difficult to target Western European market for exports as it already has a number of established defence companies. Domestic firms in Poland, as a result, aim for exports to the Middle East and developing countries, states the report.
Poland's growing economy and low production costs make it attractive for the establishment of manufacturing bases, enabling the sale of products in international markets at competitive prices. Strategic alliances and acquisition of shares in domestic defence firms are the preferred options for foreign original equipment manufacturers (OEMs) entering the Polish defence industry.
Furthermore, the collaboration of foreign investors with Polish state-owned defence organisations creates new opportunities for foreign OEMs to establish their presence in the Polish defence industry, adds the report.