Poland invests $662M to up production of 155mm ammunition

WARSAW — The government-backed Polish Capital Investment Fund (FIK) will provide over 2.4 billion zloty ($662.9 million) to four companies from the Polish Armaments Group (PGZ) to expand the production of 155 mm ammunition, according to a Wednesday announcement.

The funding will provide opportunities for the companies to expand as well as create new infrastructure and technological lines. This will allow for a significant increase in the production potential of materials and munitions, including 155mm shells that have been in huge demand since the start of the conflict in Ukraine.

Zakłady Metalowe Dezamet will receive 1.36 billion zloty to expand the production potential of 155 mm ammunition, Mesko will be granted 887 million zloty to increase the production capacity of 155 mm shells, Zakłady Chemiczne Nitro-Chem will receive 113 million zloty for the purchase of technological lines for elaborating 155 mm ammunition, and Zakłady Produkcji Specjalnej Gamrat will be granted 66 million zloty for the construction of and installation and production of base bleeds.

“We are intensively expanding our production capacity, increasing the quantitative volume and dynamically acquiring competences and technologies to produce the necessary types of weapons. This is our response primarily to the dramatic change in the security situation in Europe and the related needs of the Polish Armed Forces,” said Adam Leszkiewicz, president of the management board of PGZ, in a statement.

In November 2024, on the initiative of the Ministry of State Assets, Polish lawmakers voted to allocate money for investments to ramp up ammunition production. It enabled the FIK, at the disposal of the MAP, to be supplemented with funds in the amount of approximately 3 billion zloty, including 2 billion zloty from the budget of the Minister of National Defense. The remaining funds were transferred in the form of treasury securities, in order to increase the capacity for ammunition production in the territory of Poland.

“The Ministry of State Assets supports the development of the Polish defense industry, and the construction of large-caliber ammunition factories is one of the most important special projects supervised by MAP. Our goal is to increase domestic production of this type of weaponry, which is key on the modern battlefield, as quickly as possible,” said Jakub Jaworowski, Poland’s minister of state assets. According to him, this month the first tranches will go to companies that will immediately start implementing their business plans.

“When assessing the applications, we took into account in particular the fact that, according to the presented business plans, the entire production process will take place in Poland. This will allow for independence from foreign suppliers and building a lasting base for national autonomy,” stressed Jaworowski.

Since the war in Ukraine began three years ago, the global demand for the 155 mm artillery ammunition has increased dramatically. This type of ammunition is the critical asset for Poland’s self-propelled howitzers, the K9 Thunder and PGZ Krab.

These investments in ammunition production are also in line with the defense industry “repolonization” plan. Mesko is implementing a strategic investment in Kraśnik, the aim of which is to increase production capacity of 155 mm artillery ammunition to 150,000 pieces per year. Government representatives said in the longer term, after meeting the needs reported by the Polish Army, it could be possible to export 155 mm ammunition.

“The funds granted will enable us to increase production capacity and expand infrastructure. It is also an open path to entering new technologies, increasing profitability and further increasing competitiveness on the domestic and European market,” Arkadiusz Bąk, the first vice president of the management board of the PGZ, said in a statement. “Within the framework of the granted funds, we have prepared a concept for the organization of 3 ammunition factories. They will be based both on the expansion of existing plants, as well as the construction of new technological lines for the needs of 155 mm ammunition. Preparatory work is already underway.”

Added Bąk, “We are already implementing a contract for the delivery of 280 thousand pieces of 155 mm ammunition for the Polish Armed Forces. What we are talking about in the context of the expansion of our ammunition companies is striving, wherever necessary, possible and justified from a business perspective, for full industrial autonomy, control over production and supply chain security.”