PGZ 2.0 – new Business Services Centre in Radom - Polska Grupa Zbrojeniowa

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PGZ 2.0 – new Business Services Centre in Radom

PGZ 2.0 – new Business Services Centre in Radom 18.09.2017

Polska Grupa Zbrojeniowa is expanding its operational structures in Radom. A new Business Services Centre is being established at the Group’s offices in 24 Malczewskiego str. (Radom Office Park), which will be a company taking care of the capital group’s shared processes, such as purchases, accounting services, or ICT systems. The Group estimates that by establishing the Centre, which will be using, among other things, the latest IT tools to support the purchasing processes, it should be able save annually at least 220 million zlotys compared to the current expenses in this field.

The expansion of PGZ’s operational structures in Radom will provide significant financial savings for the capital group. In 2016 the Group’s annual expenditures related to the purchases of goods and services amounted to 2.2 billion zlotys, so it is not too hard to calculate that with cost optimisation on the level of approximately 10% the sum of savings will be at least 220 million zlotys. However, bearing in mind the fact that the shared services centres currently operating on the market enable savings of up to 20-40% of the total costs merely through the consolidation of purchases itself, even today we can expect that thanks to the Business Services Centre PGZ will save much more. The Group estimates that savings on the level of 30-40% may also be generated through consolidation of shared accounting processes. The savings will keep growing proportionally to the expansion of the Centre’s activities to fields such as trainings and competence development, as well as management and allocation of EU funds.

“Radom is a special place, a unique place both for the 2nd Republic of Poland and the nascent Polish defence industry and also, due to the memorable events of June 1976, for the modern history of our country. Therefore, I am extremely glad that Polska Grupa Zbrojeniowa – a key entity in the process of modernising the Polish Armed Forces – has decided to place its Business Services Centre here. I am sure that this investment will stimulate the growth of the city that contributed so much to our history,” said the Minister of National Defence Antoni Macierewicz.

The scope of services provided by PGZ’s new business unit will be successively expanded. During the years 2018 – 2020, PGZ is planning to develop a Group-wide handling of HR and salary processes, as well as management of the car fleet, real property, physical security of buildings, and housekeeping. More importantly, the BSC will not be limiting its services to PGZ companies only, and it is planning to co-operate with external entities as well, including in particular other Treasury companies. By design the Business Services Centre is to employ at least 300 people: the first several dozen jobs will be launched in Radom this year.

“One of Polska Grupa Zbrojeniowa’s primary goals is to finish the Group’s functional consolidation process. These activities mean a deeper integration of the companies and better usage of the existing synergies. We want to provide our clients – especially the Ministry of National Defence – with the highest quality military hardware, while at the same time ensuring effectiveness, cost-efficiency, and regular improvement of our financial results. This is the primary goal of consolidating the shared processes within the Group and the primary reason for establishing and expanding the Business Services Centre in Radom. We are striving to make PGZ into a strong and recognisable national brand with Radom as the centre of Polish defence industry,” said Błażej Wojnicz, president of the board of PGZ S.A.

Initially, the Centre will be expanding its structures at the current offices, but in 2020 it will be moved to a new building where PGZ’s exhibit centre is also located. The construction of this building complex will open new perspectives for the development of local enterprises and an opportunity for creating new jobs.

“The title of the conference: “Radom: PGZ 2.0” is a direct reference to elevating PGZ to a higher level of operation. We wanted to show that our Business Services Centre will be implementing the best market solutions in key areas of the Group’s operations,” said Rafał Zgorzelski, president of the board of PGZ System sp. z o.o., who is responsible for establishing and developing the new business unit. “Our intent is not only to introduce modern methods of managing shared processes, but also to increase the actual integration of PGZ, to improve the co-operation between PGZ companies, and to increase the effectiveness of the Group’s operations as a whole,” he added.

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