The deal was signed on the opening day of the International Defence Industry Exhibition in the south-central Polish city, with a host of officials led by President Andrzej Duda in attendance.
The new air defence system, named Narew, after the Polish river, will be produced by a consortium of domestic companies led by the state-run arms group PGZ, Poland's PAP news agency reported.
Duda hailed the agreement, saying: "We are conducting this important task of providing air defence for our country, and we are doing it on a world-class level."
Błaszczak said that, in addition to strengthening Poland's defence capability, Narew would become a "Polish export brand."
Polish Defence Minister Mariusz Błaszczak attends the International Defence Industry Exhibition in Kielce on Tuesday. Photo: PAP/Art Service
PGZ's CEO Sebastian Chwałek promised his company would "rise to this huge challenge."
Several other deals were also closed in Kielce on Tuesday, the PAP news agency reported, and the defence minister said "this process will continue."
In one upcoming team-up, PGZ and Sweden's Saab are set to supply equipment for the Polish military's training grounds, officials have announced.
The Polish head of state said these agreements signalled further modernisation of the Polish armed forces.
Duda told reporters the Narew contract was the biggest and most complex in the history of the Polish military.
"It is worth dozens of billions of zlotys and comprises almost 400 rocket launchers," he said.
He added that the framework Narew deal would be fleshed out by contracts for the supply of the various parts of the system.
Hundreds of experts are expected to be involved in the development of the Narew system, officials told reporters.
The short-range system is designed to fit into Poland's larger air defence shield, between the mid-range Patriot missiles and the very short-range Poprad launchers.
In late April, Błaszczak announced the conclusion of conceptual work on the Narew programme. It was decided the system would be produced by PGZ, with the rockets designed by a foreign partner, to be chosen in a later procedure.
First held in 1993, the International Defence Industry Exhibition in Kielce is now in its 29th year. It is billed as one of the largest events of its kind in the world.
(pm/gs)
Source: PAP