Black Hawk now

Just three months after signing a letter of intent regarding the acquisition of PZL Mielec, the American Sikorsky Aircraft Corporation and Poland's Industrial Development Agency (ARP) have confirmed the deal. Sikorsky's total investment in the facility will exceed zł.250 million, which includes a 100-percent stake in PZL Mielec plus the cost of its investments in the factory over the next five years.

Following the closure of the transaction, which is expected to take place in Q1 2007, the American firm will begin modernizing the Mielec factory. It intends to use PZL Mielec as the foundation of its European operations.

Sikorsky's president, Jeffrey Pino, said that all current manufacturing in PZL Mielec will be continued in addition to Sikorsky's own production. Pino added that Sikorsky will use its Polish operations to produce cabin components for the Black Hawk helicopter, beginning in 2008. The components will be transported to the US and assembled there. The company also aims to use the Polish facility to construct a new International Black Hawk helicopter for its global customers.

PZL Mielec currently employs a staff of 1,500. "We guarantee in the contract that we will maintain the current workforce in the mid-term perspective," said Pino. "Mielec's factory trade unions have negotiated good social packages, so wages will be growing on a year-to-year basis."

Treasury Minister Wojciech Jasiński said that PZL Mielec's potential was not fully utilized and the agreement with Sikorsky would improve the situation. "This investment will stabilize the economic situation in the region and hopefully attract many of Poland's young engineers to work for Sikorsky," he said.