German defense propulsion developer Renk plans to open service and production facilities in Poland as part of a broader expansion along NATO’s eastern flank.
The firm said Warsaw’s rising defense spending and the alliance’s reinforced presence in the region underpin the expansion.
The company will first service tank transmissions, engines, and chassis before moving into local production, with planned sites to initially support customers in Ukraine, Poland, and the Baltic states, according to Der Spiegel.
Renk plans to invest up to 500 million euros ($580.8 million) over the next four to five years to expand production capacity and fund research and development.
Before Russia invaded Ukraine in 2022, the company produced 200 to 300 gearboxes annually.
Output is set to rise to 800 by the end of 2026, with the firm aiming to triple revenue by the end of the decade compared with 2024 levels.
“If a tank breaks down…you can’t drive it 2,000 kilometers (1,243 miles) for maintenance and bring it back six months later,” said Renk’s CEO Alexander Sagel, calling Poland “an ideal place” to stay close to regional clients.
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The Augsburg-based corporation has reorganized production at its main plant, adopting modular processes modeled on the automotive sector to boost efficiency and roughly triple deliveries.
It supplies the German Navy and most Western tank giants, including KNDS, Rheinmetall, and Leonardo.
Despite constant support, Sagel argued that the defense industry in Europe needs to distribute equipment faster to significantly improve warfighter readiness.
He added that tanks remain essential despite advances in drone warfare.
“Only with conventional combat systems can you hold territory, Sagel noted, citing that a drone wall alone “will not stop an army attacking with tanks and missiles.”