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In an interview with National Security military portal, Paweł Terlecki, president of CENZIN, explains why the future no longer lies in selling individual products, but in capabilities, technologies and services, and how CENZIN intends to make use of the remaining years of Poland’s expertise in modernising post-Soviet equipment.

Formally, you have been president of CENZIN since mid-April 2026, although you had been performing the duties of president since November 2024. Moreover, with brief interruptions, you have been associated with CENZIN since 1993. Before we discuss the company itself, I would like to ask about your professional career. What positions have you held and what experience have you gained during your time with the company?

Paweł Terlecki: I have had the opportunity to go through virtually every level of management in the company. I started as a sales executive, then became a senior sales executive, chief specialist, department manager and deputy director of one of the trading offices. Then came a major step: from that position I moved directly onto the company’s Management Board as a Board Member. That was in 2007.

One of the reasons for our meeting is that CENZIN is celebrating its centenary this year. The company itself, however, has not operated under this name since 1926, so we are talking about a certain institutional succession. What has the company’s history looked like?

Yes, the company is regarded as the direct successor to SEPEWE, an enterprise which, from 1926 onwards, was engaged in promoting and exporting Polish armaments. At that time, exports reached more than 40 countries worldwide. The offering included, among other products, PZL.37 Łoś bombers, PZL P.11 fighters, training, observation and transport aircraft, tankettes and other armoured equipment, guns, howitzers and mortars, as well as Mauser-system rifles, machine guns, ammunition and a wide range of military equipment.

In the post-war period, from 1950 to 1989, the organisation operated as the Central Board of Engineering within the Ministry of Foreign Trade and subsequently the Ministry of Foreign Economic Cooperation. At that time, it was responsible for conducting special trade on behalf of the authorities of the Polish People’s Republic. A major organisational change took place on 15 May 1990, when the enterprise was transformed into a commercial-law company.

CENZIN is a rather unusual company within the defence sector because it does not conduct manufacturing activities. One might say that it is Poland’s largest representative company specialising primarily in the professional trade in armaments.

We are engaged in special trade. In practice, of course, this is commercial activity, but it would be difficult to say that we are the largest entity in this market. The scale of our operations is sometimes overstated. The company has clearly become smaller in recent years. At the height of our development, in the 1990s and the early 2000s, we employed a maximum of 132 people. Today, our team numbers 57 employees.

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Let me put the question differently. What is CENZIN’s current position in the market for trade in controlled goods? The company belongs to Polska Grupa Zbrojeniowa, which holds a 70% stake. PGZ had announced that CENZIN would have access to the Group’s full product portfolio and would therefore be able to offer those products to foreign customers. Is that in fact the case?

That is correct. Access to the entire range of products offered by Polish defence-sector companies is guaranteed to us by Polska Grupa Zbrojeniowa. Our principal role, however, remains the trade in products that are not included in PGZ’s portfolio, although we can also offer products manufactured by companies belonging to the Group.

What does it mean in practice that your portfolio also includes products from outside the Group? What are the specifics of this business model? Do companies approach CENZIN with a ready-made offering and look for a partner to help them identify markets, or do you first secure customers and then look for manufacturers capable of supplying the required solutions?

In practice, both models operate.

On the one hand, companies with unique solutions approach us because they want to establish a broader market presence and are looking for customers for their products. This applies both to goods in the controlled defence and security sector, which require a licence, and to entirely civilian products.

On the other hand, we ourselves look for suppliers of equipment for which a specific requirement has emerged. When procurement procedures or tenders are announced, we analyse the market and identify suitable manufacturers, both in Poland and abroad.

We are also an importer of products and technologies intended for domestic customers. This applies both to licensed activities and to strictly civilian business. Our civilian division deals, among other things, with railway components such as wheels and bogies, as well as X-ray scanners. This business is conducted in parallel with special trade and does not require a licence.

What, then, is the proportion between licensed and civilian activities?

The clear majority of our 2024 revenue came from licensed sales. It can be estimated at approximately 70% of revenue from the sale of goods and services.

And what is the ratio between exports and imports?

Over the years, these proportions have changed significantly. For a long time, exports accounted for around 70% of the company’s business, while domestic trade made up the remaining 20–30%. This structure remained broadly unchanged until around 2016.

Later, as a result of changes both in the company’s environment and in its strategy, these proportions became severely distorted. When I returned to the company in 2024, exports accounted for just 2% of total turnover.

That was a rather interesting experiment from the perspective of the company’s operations. I assume you analysed the impact of this strategic shift on financial performance, relationships with partners and market position. What conclusions did you draw from the period when the company’s activities were focused primarily on the domestic market?

Indeed, our activities at that time were focused primarily on the domestic market, but to a large extent they were based on imports. The objective was to meet the needs of domestic customers.

Import activity itself was, and still is, an important part of the company’s operations. The problem, however, was that the second pillar of our business, namely exports, began to weaken very significantly.

It is difficult for me today to identify the reasons for that situation unequivocally. I do not know whether it resulted from a lack of interest, insufficient understanding of the specific nature of export activity, or other factors. It was nevertheless surprising, especially as CENZIN had been a foreign-trade enterprise from the very beginning. That was the fundamental purpose for which the company was established.

So the conclusion was clear – CENZIN had to return to exports?

Definitely. The figures illustrate this best. When I returned to the company, exports accounted for 2% of our business. Today, the figure is already around 40%, and our immediate goal is to reach at least 50%. In 2024, CENZIN also increased its sales revenue from PLN 105.4 million to PLN 139.1 million, an increase of more than 32%.

What specifically are we talking about? Which products or services are CENZIN’s leading export offerings today?

At present, the greatest demand is for all types of modernisation, repair, engineering and development services, primarily delivered in the Indian market. As a result, the sale of finished products is becoming less important than know-how and technology transfer.

Is this because, in the 1990s and early 2000s, CENZIN mainly exported post-Soviet equipment, which has now virtually disappeared? It has either been withdrawn from service or transferred to Ukraine, while new equipment is only now entering service with the Polish Armed Forces and is not yet available for export?

Not entirely. The development of the services I mentioned stems primarily from the fact that Poland still has specialists with unique expertise in the modernisation of post-Soviet equipment. I am not referring solely to CENZIN, but to the capabilities of the entire domestic industry.

We also still have technical documentation that enables us to design and modernise armaments of this type. However, we must be aware that this capability will not remain available indefinitely. We estimate that it will last for another five or six years.

After that, the documentation will no longer be needed because the equipment will be withdrawn from service. It will be archived or destroyed. Naturally, the people with unique expertise in this field will also leave the sector. That is why I believe that now is the last moment to make use of these capabilities.

Apart from India, which foreign partners currently play the most important role in your business?

For many years, the structure of our principal markets has remained essentially unchanged. India and Algeria are CENZIN’s most important markets. Of course, our activities are not limited to those countries. We also operate in the Arab Republic of Egypt, Finland and countries in Southeast Asia. Nevertheless, India and Algeria remain our historic markets.

We have had, and continue to maintain, representative offices in both markets, so cooperation there has been developed over many years and rests on very solid foundations.

What about the future, then? If the opportunities associated with modernising post-Soviet equipment are going to diminish gradually, the next few years must be used to build a new business model.

Absolutely. The future belongs to new technologies, and that is the direction in which we want to develop the company. Of course, this is a process that requires time, considerable effort and consistency, but I am convinced there is no other way forward.

One only has to look at what has happened in Ukraine. The pace of development in military technology is enormous. Before 2022, small drones were associated primarily with recreational devices and gifts for children’s First Communion. Few people viewed them as instruments of warfare or as systems capable of having a real impact on the course of military operations. Today, their role is entirely different.

When you speak about a new portfolio, do you mean primarily products, or also services, technical support and capability transfer? Does this imply a certain change in the company’s business model?

To some extent, yes. The sale of finished products will of course remain an important part of our business, but technology transfer and the sale of know-how offer much greater value. This is unique expertise that cannot easily be replaced.

Many companies can sell a finished product. Modernising it, developing it or adding new capabilities, however, requires experience and expertise that not everyone possesses. This is precisely where we see the greatest potential for growth.

Exports are one of the pillars of CENZIN’s business. Imports remain the second. What is the company currently focusing on? What products are Polish customers looking for today, and what do you most frequently import into Poland?

Virtually the full range of products is available on the market. Our import activities focus primarily on weapons, ammunition and equipment intended for the Ministry of the Interior and Administration, the Police, the Border Guard, the State Protection Service and other uniformed services.

So we are not talking about major weapon platforms such as tanks or howitzers, but rather about individual weapons?

Yes. We are talking primarily about weapons, ammunition and other combat materiel, as well as ballistic protection solutions.

How do Polish manufacturers fit into this picture? Fabryka Broni offers modern pistols and assault rifles, while the domestic ammunition industry is also developing. Is there a visible trend whereby Polish companies are increasingly winning procurement procedures, or does import still dominate?

It all depends on the contracting authority. Procurement is not conducted through direct awards. Every procedure is competitive, and every manufacturer can submit an offer.

As regards the Ministry of National Defence, our cooperation with the Ministry is relatively limited. In practice, we work much more frequently with the other uniformed services.

Fabryka Broni focuses primarily on deliveries to the Polish Armed Forces. There is therefore a natural division of the market. We do not compete directly with one another; rather, we complement each other and cooperate.

I would like to clarify one more point. CENZIN is able to offer products from all companies belonging to Polska Grupa Zbrojeniowa, but at the same time each of those companies may also conduct sales independently?

Yes. It should be emphasised, however, that in the domestic market we do not offer products from companies belonging to the PGZ Group. We offer them for export.

What arguments, then, favour PGZ companies using CENZIN as an intermediary when exporting their products?

It may sound somewhat grandiose, but our greatest assets are our knowledge, experience and familiarity with specific markets.

Many companies have very good products, but lack the appropriate contacts or experience needed to conduct commercial activity in particular foreign markets. We have those capabilities. Manufacturers provide us with the full documentation and materials required for promotion and bid preparation, after which we undertake the activities aimed at selling their products.

But trading in controlled products is surely a very different world from conventional business? Success is not determined by price alone. Political considerations, strategic issues and international relations also matter?

Of course, those factors matter. Licensed activity itself, however, is not anything exceptional. A licence can be obtained by any entity that meets the relevant requirements, and the conditions for entering this market are not extraordinarily restrictive.

Business in foreign markets, on the other hand, is indeed influenced by many factors. Political changes, new government priorities or preferences for particular suppliers can have a real impact on the ability to do business. This is a natural feature of operating in international markets.

What directions of expansion does CENZIN envisage for the coming years?

First and foremost, we want to maintain and develop the two most important markets that we have managed to revive after a period of stagnation.

In India, we are currently carrying out projects which, unfortunately, I cannot discuss in detail. We are bound by obligations arising from the agreements we have signed, so I cannot disclose further information. I can say, however, that these are multi-year projects planned over a five- to six-year period. They do not involve a one-off product sale, but rather long-term cooperation with a partner.

The situation is similar in Algeria. We have also managed to revitalise that market significantly, and fulfilling the contracts already signed will take us at least another two or three years.

And the other markets?

We are currently developing cooperation with Egypt very intensively. I hope that in the near future we will be able to finalise discussions with a potential partner, sign the necessary agreements, including an NDA (Non-Disclosure Agreement), and begin implementation of the project.

Among European countries, Finland remains an important partner. We regularly supply parts there for MT-LB vehicles (light multipurpose armoured tracked vehicles developed in the Soviet Union). We know, however, that in two or three years this line of business will probably come to an end because the equipment is due to be finally withdrawn from service.

Our business in Southeast Asia, particularly in Malaysia, is also developing increasingly well. In this case, however, we are already talking about the civilian sector and projects related to rail vehicles.

Let us stay with the civilian market for a moment. There is increasing discussion today about dual-use solutions and the need to operate in both military and civilian markets. I understand that CENZIN is expanding its portfolio not only with products for the railway sector, but also with weapons and ammunition intended for the civilian market.

In fact, this is not a new area of activity. Weapons and ammunition have been part of our offering for years.

What I mean, however, is a greater emphasis on developing this segment. Is this already reflected in the financial results? Can you see the civilian market becoming more important in the company’s revenue structure?

The civilian market, in the conventional sense of the term, is developing steadily but relatively slowly. Growth is stable, but it is not particularly dynamic.

Are we talking primarily about wholesale sales? I remember that around 2019–2020 there was an idea to launch a CENZIN online store where individual customers could buy, among other things, optoelectronics, clothing, weapons and ammunition. Is that project no longer being developed?

The idea itself emerged much earlier, around 2014 or 2015. That was when the online store was launched for the first time.

Following the changes introduced after 2016, an attempt was made to develop this sales channel to the greatest possible extent, focusing the company’s activities primarily on the domestic market at the expense of exports. I was not involved in managing the company at that time, so I can only assume that domestic sales were intended to become the principal pillar of the business.

The plan was to develop both wholesale and retail sales through the online store. Customers could buy clothing, equipment and ammunition. As far as I remember, there was even a concept to build a network of brick-and-mortar stores. Ultimately, however, those plans were not implemented.

Are you considering returning to those ideas?

No. From my perspective, that chapter is definitively closed.

What, then, should we wish you and the company for the coming years? In what direction would you like CENZIN to develop, and which products or services are intended to form the basis of its business?

Of course, we would like to sell as many products as possible to as many customers as possible. Realistically, however, what matters most to me is for CENZIN to move to a higher level of activity and increasingly focus on systems and advanced technologies.

I would like us gradually to move away from fulfilling orders for spare parts for BWP infantry fighting vehicles, BRDM vehicles or T-72 tanks, and to place increasing emphasis on solutions with a much higher level of technological sophistication.

This is, in any case, a natural direction of development. The Polish Armed Forces will also gradually phase out post-Soviet equipment. That process is already under way and, although it will take a long time, it will eventually be completed. We still operate BRDM vehicles dating back to the 1960s, and as long as they remain in service, spare parts will be needed for them. The problem is that those parts are becoming increasingly difficult to obtain.

Finally, let us return to the proportions between exports, imports and domestic activity. How would you like CENZIN to look ten years from now?

Ultimately, I would like exports to account for around 80% of our business, with the remaining 20% made up of our other business areas.

This does not, however, mean reducing our import activities. Quite the contrary. I want the whole company to grow, rather than any one of its segments to shrink. I simply want the share of exports to grow consistently faster than the other areas of our business.

If we manage to implement the adopted strategy consistently, I am convinced that this model can be achieved.

Since 2024, we have recorded very rapid growth in the share of exports. Of course, that was the first and largest leap. Further growth will be more gradual, because it is impossible to secure the necessary number of contracts and business partners overnight. I am nevertheless convinced that over the next three or four years we will continue to record steady growth.

And what would I wish for most? Above all, stability that will allow us to pursue our adopted objectives consistently, and support in achieving them.