Poland invests EUR 565mn in ammo plants
Poland will quintuple its large-calibre ammunition output by 2027 through three production sites operated by the Polish Armaments Group (PGZ), the Polish State Assets Ministry said.
The project forms part of a wider Polish Defence Ministry plan to double national arms output by 2028 and increase munitions exports. The move aligns with EU-wide initiatives to scale up defence manufacturing, and the European Defence Agency (EDA) and the European Investment Bank (EIB) support for artillery production infrastructure.
Poland increasingly pivotal for NATO
The announcement cements Poland’s ambition to become a munitions hub on NATO’s eastern flank amid continued high demand from Ukraine and mounting pressure across Europe to boost defence readiness.
The plan will build a new facility and upgrade two existing ones, investing around EUR 565mn. The project will ramp up Poland's annual production of NATO-standard 155 mm artillery shells from 30,000 to 180,000, and also increase manufacturing capacity for 120mm tank rounds and propellant components.
Ukraine has been using around 6,000 shells per day, according to figures reported by UK daily The Financial Times on 30 June, to Russia's 250,000 per month, or 8,333 daily.
PGZ president Sebastian Chwalek said the group aims to fully integrate the domestic supply chain, from steel to explosives, to supply Polish forces and European allies alike.
PGZ to lead integrated supply push
By developing a vertically integrated chain, Poland aims to relieve supply bottlenecks, enhance strategic autonomy and become a long-term defence-industrial anchor on NATO’s eastern flank.
Four PGZ-linked firms will share the investment. Dezamet will receive PLN 1.36bn (EUR 318.43mn) to establish 155mm production lines in Nowa Deba, while Mesko, Nitro-Chem and Gamrat will expand shell-body, explosive and base bleed component output. Dezamet will trial production from 2026, and all facilities will be fully operational by the end of 2027.
Move will plug supply gaps, meet autonomy goals
The Polish government said the investment aims to reduce reliance on non-European stocks, after US deliveries to Ukraine slowed in early 2025 due to congressional delays that led to ammunition shortfalls across NATO countries.
Polish State Assets Minister Borys Budka said the new lines will ensure operational sovereignty and timely support to allies.
Rapid growth of PMZ sees foreign interest
PGZ is Poland’s premier defence-industrial holding, established in 2013 by the government to consolidate more than 50 state-owned companies under a single umbrella. Headquartered in Radom, central Poland, PGZ has grown into one of Europe’s largest arms manufacturers, employing around 20,000 people and ranking 64th globally in arms-producing revenue, according to the 2023 SIPRI listing.
The holding has a network of specialised subsidiaries: Mesko is Poland’s primary producer of guided and unguided munitions; Nitro-Chem, based in Bydgoszcz, north Poland, is one of Europe’s few producers of high-energy explosives, while Gamrat supplies advanced materials including propellant components and base bleed technologies.
Polish Deputy Defence Minister Cezary Tomczyk said in March that companies from Germany, France, South Korea and Turkey have expressed interest in joint ventures with PGZ.