Polska Grupa Zbrojeniowa (PGZ) and BAE Systems have signed an agreement to build a 155mm artillery ammunition manufacturing facility in Poland. The plant is intended to increase domestic production capacity and reduce reliance on foreign suppliers.
BAE Systems will provide technology transfer and production know-how to PGZ. The facility will incorporate the same automated processes currently used in the United Kingdom, where they are expected to deliver a sixteen-fold increase in output.
The partnership is designed to strengthen Poland’s industrial base and create several hundred skilled jobs, while also enhancing NATO’s munitions supply on its eastern flank.
Charles Woodburn, Chief Executive of BAE Systems, said:
“Transferring technology and learning will enable Poland to significantly expand its production capacity of critical 155mm munitions, helping to strengthen its industrial base and supply chain resilience in the face of an increasingly volatile security environment. This is not only important for Poland’s own national defence but will also help to enhance its contribution to securing NATO’s eastern flank.”
Adam Leszkiewicz, President of PGZ, stated:
“When evaluating the individual offers, we placed particular emphasis on achieving production sovereignty and the development potential of PGZ's ammunition domain. Considering that this is an open-ended contract, under which we are acquiring completely new competencies for many years, we analysed a very broad range of criteria. I am confident that we made the right choice, beneficial both for the future of our group and for our country's international relations.”
According to PGZ, the country aims to produce between 150,000 and 180,000 large-calibre shells annually. The 155mm ammunition is a key asset for Poland’s self-propelled howitzers, including the K9 and Krab systems.
UK Defence Secretary John Healey said the initiative aligns with London’s Strategic Defence Review:
“We are backing British businesses to win on the international stage and this investment is a vote of confidence in British industry. This new partnership will strengthen Poland’s security while broadening our UK-Polish defence industrial partnership, showing how defence is an engine for growth across our two nations. Here at home, we are delivering on the Strategic Defence Review’s recommendations to create an ‘always on’ munitions production capacity.”
Construction of the new facility in Poland is expected to begin this year, with completion targeted for 2027–2028.