The investments by Ukrainian defence technology manufacturer TAF Industries and Polska Grupa Zbrojeniowa (PGZ) in the planned localisation of production in Poland and the expansion of production capacity are likely to be of equal value, according to TAF Industries founder Oleksandr Yakovenko.
“We will be working together, which means that the investments are likely to be of equal value,” he told journalists, commenting on the memorandum of understanding signed between the two companies at the end of June in Gdańsk on the sidelines of the URC 2026 conference on Ukraine’s reconstruction, as part of the Build with Ukraine programme.
When asked to clarify whether the investment would be split 50-50, Yakovenko explained that he could not answer at this stage, as the matter was still under negotiation.
Yakovenko noted that, based on TAF Industries’ previous experience of establishing joint ventures with companies in Germany and Denmark, the practical implementation of such projects must be preceded by the signing of a memorandum of understanding between the countries.
According to him, in the case of Germany – where, as part of the ‘Build with Ukraine’ programme, TAF Industries signed a memorandum of strategic partnership with the German manufacturer Thyra in April this year – the company has already secured its first contract worth EUR35 million.
“I don’t know how things will pan out in Poland,” the founder of the Ukrainian company clarified.
He added that the process of setting up production in the EU takes longer than in Ukraine.
“We’re only just starting production (in Germany) now because, as you can imagine, in Ukraine we can do this in two or three months. In Germany, it took us just two months to sort out all the legal structures. So it’s not all that quick. In Poland, I think it will be somewhere in between,” said Yakovenko.
He also noted that in Poland, TAF Industries will collaborate exclusively with PGZ: “We don’t work with several companies at the same time, as that would be a distraction.”
According to him, Poland is a leading example of outstanding European engineering with long-standing technologies and is developing very strongly in terms of mill-tech; therefore, the planned joint activities also involve utilising Polish technologies.
“We (the Ukrainian side – If-u) can test quickly and adapt quickly, whilst our European partners can scale this up and refine it into those technologies… And this is precisely where the basis for our cooperation lies,” believes Yakovenko.
Among the potential product range of the joint venture in Poland, he mentioned drones for miltech, particularly interceptors, and ground-based robotic systems which Poland could use for border monitoring, the automation of armoured vehicles for unmanned operation, and reconnaissance, including for combating smuggling and illegal migration.
The founder of TAF Industries noted that, in such a joint venture, the company is actually more focused on finding solutions that will remain viable even after the war ends.
“If I wanted to think only in the short term, I wouldn’t be speaking to you now, because 95 per cent of my income comes from orders from the Ukrainian Ministry of Defence,” explained Yakovenko.
Regarding joint production with European partners, he also highlighted the aim of maximising the localisation of components.
“Three years ago, we were talking about the need to be ‘Chinese-free’, that is, without Chinese components; now, however, we are discussing the likelihood that we will need to be free of American components – in other words, to localise production,” said the Ukrainian entrepreneur.
According to him, it is impossible to manufacture products entirely without either China or the US, but step by step, localisation must be deepened by drawing on Ukrainian expertise and the European technological base.
Yakovenko also stated that, in addition to Germany, Denmark and Poland, the company is in contact with other countries regarding similar activities, though he did not name them.
He clarified to the Interfax-Ukraine news agency that TAF Industries does not yet have plans to launch an IPO in the future.
“My focus is on running an operational business. In other words, even with our future Polish partners, we are not seeking investment, but rather looking to strengthen each other and build an operational business. So this will be about generating revenue straight away, rather than investing money and waiting for something to happen. Venture capital is a different story altogether. It’s not my core competence, so I’m keeping my distance,” he explained.
According to Yakovenko, whilst TAF Industries produced 0.5 million drones worth $400 million last year, this year it will produce over 1 million, and also operates a business supplying components.
The Ukrainian defence technology manufacturer TAF Industries produces more than 30 types of defence products, including FPV drones and reconnaissance UAVs, electronic warfare systems, remote control solutions and artificial intelligence-based combat technologies.