U.K.-based Babcock International, Sweden’s Saab, and Italy’s Fincantieri have formalized agreements to strengthen collaboration with Poland’s state-owned defense conglomerate PGZ.
These agreements come at a pivotal time as Poland’s Ministry of National Defence moves forward with plans to acquire a new fleet of submarines, intended to enhance operations in the shallow waters of the Baltic Sea. All three European firms have expressed interest in this procurement initiative.
The cooperation deals with PGZ were signed during the opening day of this year’s MSPO defense exhibition in Kielce, held September 2–5. Defense Minister and Deputy Prime Minister Władysław Kosiniak-Kamysz confirmed that Warsaw intends to purchase between three and four submarines for the Polish Navy by the end of 2025. The acquisition, known as the Orka (Orca) program, is considered urgent, as Poland’s naval forces currently rely on a single aging Soviet-era Kilo-class submarine, the ORP Orzel.
PGZ’s central role in Poland’s defense sector makes it an appealing partner for international defense companies eager to compete for what could become the largest naval procurement project in the country’s history. Pierroberto Folgiero, CEO and managing director of Fincantieri, emphasized the company’s experience in building over 180 submarines and its readiness to support Poland’s modernization plans under the Orka initiative, while also fostering long-term industrial partnerships with PGZ.
Babcock already works with PGZ on the Miecznik (Swordfish) program, under which three frigates are being constructed for the Polish Navy based on the Arrowhead 140 design. Deliveries are scheduled between 2026 and 2032. CEO David Lockwood highlighted the U.K.-Poland defense relationship, noting that expanding cooperation to Orka would strengthen existing ties and advance shared naval and aerospace goals.
Saab’s president and CEO, Micael Johansson, also underlined the strategic importance of building on Swedish-Polish defense cooperation, particularly in the Baltic Sea region. This effort was further supported on September 2 when Poland and Sweden signed a bilateral defense cooperation pact during the MSPO event, following talks between Kosiniak-Kamysz and Sweden’s Defense Minister Pål Jonson.
Domestically, Poland’s government faces mounting political pressure to deliver on the submarine program. During Armed Forces Day celebrations in Warsaw on August 15, opposition-backed President Karol Nawrocki urged swift action, stressing that Polish sailors have been waiting decades for new submarines.
Competition for the Orka contract is intense. A 2023 consultation process drew interest from 11 entities, including major defense players such as France’s Naval Group, Germany’s ThyssenKrupp Marine Systems, Spain’s Navantia, and South Korea’s Hanwha Ocean and Hyundai, alongside Babcock, Fincantieri, and Saab. In May 2025, the Polish Ministry of Defence confirmed that proposals from Germany, Italy, and Sweden received the highest evaluations, though other offers remain under review amid ongoing discussions with foreign governments.
Since Russia’s full-scale invasion of Ukraine in 2022, Poland has emerged as one of NATO’s leading defense spenders. For 2025, Warsaw has allocated 186.6 billion zloty ($51 billion) to its military budget, equivalent to roughly 4.7% of the country’s GDP.
