Babcock, Fincantieri, Saab Pursue Partnerships in Poland as ‘Orca’ Submarine Contract Awaits

Key Takeaways

Babcock International, Saab, and Fincantieri have partnered with Polish defense group PGZ to enhance naval capabilities.
Poland plans to procure three to four new submarines under the urgent Orka program by 2025.
Amidst rising geopolitical tensions, Poland’s military budget is projected to reach 4.7% of its GDP in 2025.

Strengthening Poland’s Naval Defense

Poland is intensifying its naval defense strategy with new cooperation agreements between the U.K.’s Babcock International, Sweden’s Saab, and Italy’s Fincantieri along with state-run defense group PGZ. These agreements were formalized at the MSPO defense industry show in Kielce from September 2-5, aiming to bolster Poland’s naval capabilities in the Baltic Sea.

Poland’s Ministry of National Defence has set a goal to acquire three to four modern submarines by the end of 2025 under the Orka program. This initiative is seen as urgent due to the reliance on the outdated Kilo-class ORP Orzel submarine, emphasizing the need for updated naval support.

PGZ’s integral role in the Polish defense sector makes it an appealing partner for emerging opportunities in a potentially transformative naval program. Fincantieri’s CEO, Pierroberto Folgiero, expressed the company’s commitment to Poland’s naval modernization efforts, emphasizing its experience with over 180 submarines and advanced naval platforms.

Babcock is already involved with PGZ through the Miecznik program, which focuses on building three frigates based on the Arrowhead 140 design. The deliveries are expected between 2026 and 2032. Babcock’s CEO, David Lockwood, highlighted the long-standing relationship between the U.K. and Poland, noting that this partnership would further enhance support for the Polish armed forces.

Saab’s president, Micael Johansson, praised the potential for expanding collaboration between Sweden and Poland, especially in ensuring security throughout Europe and the Baltic region. Moreover, a recent Polish-Swedish defense cooperation agreement was signed, strengthening ties further.

Political pressure is mounting from Poland’s centrist government to finalize the submarine purchases. Polish President Karol Nawrocki emphasized during the Armed Forces Day parade the necessity for Polish-made submarines, citing a long-standing need among sailors for better capability.

The Polish Armaments Agency has preliminarily identified proposals from Germany, Italy, and Sweden as the most favorable during the procurement evaluation process. Despite these rankings, discussions with other foreign governments about additional offers continue, keeping the options open for the Polish Navy.

Following Russia’s invasion of Ukraine in 2022, Poland’s military has become one of the largest spenders in NATO. The government plans to allocate PLN 186.6 billion ($51 billion) to military spending in 2025, which would result in military expenditures constituting approximately 4.7% of the annual GDP. The urgency to modernize and expand navy capabilities appears crucial not only for securing national interests but also for enhancing regional stability.

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