Polish company to receive $663 million to increase shell production fivefold
The Polish government has allocated 2.4 billion zlotys (approximately $663 million) to increase the production of large-caliber ammunition. The defense group Polska Grupa Zbrojeniowa (PGZ) will receive the funds "in the coming days," said the Minister of State Assets, Jakub Javorowski, in an interview with the Financial Times.
The investment is aimed at increasing the annual production volume of 155-mm artillery shells, which are used for NATO standard howitzers, and 120-mm shells for tanks.
Currently, PGZ produces about 30,000 large-caliber shells per year. The funding is expected to increase this figure more than fivefold – to 150,000-180,000 per year over three years. Production will remain in Poland to avoid dependence on imported components.
"Our short-term goal is to significantly increase domestic production of this type of weaponry, as well as to become independent from foreign supplies and build a stable base for national autonomy. This is one of our priorities," said the Polish minister.
The then-CEO of PGZ, Sebastian Hwylek, announced an increase in artillery shell production by more than five times back in 2023.
In April 2025, the new head of the concern, Krzysztof Trofniak, suddenly resigned from the position of head of PGZ, having worked there for only a year. His dismissal, according to the FT, was linked to concerns about production halting.
The resignation of the head of PGZ coincided with a warning from the head of the Polish National Security Bureau, Dariusz Lukowski, that current ammunition stocks would only last for one to two weeks of fighting in the event of a Russian attack.
The PGZ funding comes after the Polish parliament approved the allocation of 700 million euros in state investment last November to strengthen the country's ammunition production capacity.
According to Yavorsky, Grupa Azoty, the largest chemical concern in Poland, also appealed to the state with a request to allocate funds for expanding its activities in the ammunition sector by producing key components such as propellant charges and nitrocellulose for explosives.
Another domestic defense company, Niewiadów, is also seeking government funding to produce 155mm shells.
The FT notes that Poland spends the most on defense among NATO countries. In 2025, 4.7% of its GDP is to be allocated to military needs. However, most of the funds have so far gone to foreign suppliers, mainly the US and South Korea.The Polish government is now trying to focus its efforts on supporting domestic manufacturers. This aspiration aligns with Europe's policy of reducing its dependence on the US and other foreign suppliers in the defense sector.