Negotiations between South Korea’s Hyundai Rotem and Poland over a second contract for K2 main battle tanks have hit an impasse, raising concerns over the future of local production and causing unrest among workers at a key Polish defense plant.
The second-phase deal, originally expected to mirror the 180-unit order of the first contract, has become entangled in disputes over pricing, technology transfer, and local production terms.
According to local reports, the cost of the contract has risen to nearly 9 trillion won (approximately $6.2 billion), more than double the original price, due largely to the inclusion of locally manufactured K2PL variants.
Bumar-Łabędy, a defense company under the Polish Armaments Group (PGZ), was slated to manufacture the localized K2PL tanks. However, delays in securing the deal have triggered protests among its workforce, who fear a production gap once current projects are completed.
On March 26, employees staged a demonstration in front of the plant’s main gate in Gliwice, demanding clarity on the tank program’s future.
Polish outlet WNP reported that workers are concerned the conclusion of the Leopard 2PL upgrade program—currently Bumar-Łabędy’s main production line—will leave them without follow-on contracts. The Leopard 2PL, an upgrade of older German Leopard 2A4/5 tanks, has faced technical issues, prompting Poland to shift its focus to the K2PL.
Union representatives say they were promised a production role in the K2PL project but have yet to see concrete commitments. They also noted a lack of alternative programs, such as the Krab self-propelled howitzer, to fill the gap.
Despite the tensions, PGZ management emphasized that the protest represented only a fraction of its workforce. In a statement, PGZ said it is committed to “long-term employment stability and job growth,” dismissing suggestions of planned layoffs.
Negotiations with Hyundai Rotem remain ongoing. The company has reportedly proposed delivering initial batches of the base-model K2GF tanks built in Korea, with subsequent K2PL units to be manufactured in Poland under a phased technology transfer.
The K2PL is an upgraded variant tailored to Polish requirements, featuring remote weapon stations (RCWS) and active protection systems (APS) designed to detect and neutralize incoming anti-tank threats.
While both sides continue discussions, the prolonged timeline has cast uncertainty over Poland’s armored modernization plans and Hyundai Rotem’s growing defense export footprint in Europe.