BYDGOSZCZ, Poland, March 16 (Reuters) - A new production line at the plant of Poland's Nitro-Chem will double its production of the trinitrotoluene (TNT) explosive, Poland's deputy prime minister said
New TNT production line to double Polish explosives plant's output in 3-4 years
Poland's Nitro-Chem Plans Major Expansion of TNT Production
BYDGOSZCZ, Poland, March 16 (Reuters) - Poland's Nitro-Chem, a major supplier of trinitrotoluene (TNT) for NATO countries' armies, will build a new production line to double its output of the explosive, officials said on Monday.
Timeline and Production Capacity
The line's completion is expected in three to four years, Deputy Prime Minister Krzysztof Gawkowski told a news conference.
With an annual production of 10,000 metric tons, Nitro-Chem is already Europe's main producer of TNT and one of the world's largest, according to its website. It is a major supplier of the explosive for the U.S. military and other NATO members.
Uses of TNT
The material is used in artillery shells, bombs, grenades and mines.
Strategic and Diplomatic Implications
"Doubled production of TNT will constitute an incredible competitive advantage, also giving us, Poland, diplomatic opportunities," Gawkowski said. He did not elaborate on the diplomatic opportunities.
Investment and Financing
Nitro-Chem deputy CEO Karol Przybyszewski told Reuters that the investment in the new production line, worth between 1 billion and 1.5 billion zlotys ($269 million-$404 million), would come from the company's own funds and external financing, with talks with Poland's Ministry of State Assets and state-owned banks at an advanced stage.
Prospective Buyers
Przybyszewski also said that the company had signed a number of letters of intent with prospective buyers of the new TNT capacity, adding that these were entities from NATO and European countries.
Expansion into Other Explosives and Defense Projects
Adam Leszkiewicz, the CEO of PGZ, which owns Nitro-Chem through its subsidiary Mesko, said the company also planned to grow its production capacity of hexogen, also known as RDX, and take part in the manufacturing of mines.
Poland's Defense Strategy
Poland, like most of Russia's European neighbours, has moved to leave a treaty that bans the production and use of anti-personnel mines, seeking to deploy them as part of its "East Shield" project to secure its borders with Belarus and the Russian enclave of Kaliningrad.
Exchange Rate Information
($1 = 3.7145 zlotys)
Reporting Credits
(Reporting by Karol Badohal, writing by Anna Wlodarczak-SemczukEditing by Tomasz Janowski and Andrei Khalip)
