Poland Approves $735M Investment to Boost Ammunition Production Capacity

The draft act introduces a PLN 3 billion ($735 million) investment for expanding domestic ammunition production capabilities, including the construction of a new factory.

Poland's Council of Ministers approved a draft bill to increase ammunition production capacity, allocating PLN 3 billion, with PLN 2 billion from the Ministry of National Defense and PLN 1 billion from treasury securities.

The bill is seen as a critical step toward ensuring the country can produce key military materials, such as 155 mm ammunition, on its own.

Deputy Prime Minister Władysław Kosiniak-Kamysz also indicated that Poland plans to build not just one, but multiple ammunition factories, and intends to work closely with NATO and European Union partners to further this effort.

The planned legislation includes measures to recapitalize companies involved in ammunition production, thereby boosting the overall capacity of the domestic defense industry. The aim is to enhance Poland's ability to produce and replenish reserves of various types of ammunition. As part of this initiative, significant investments are earmarked for expanding the production base of large-caliber ammunition.

In a related development, a letter of intent was signed on November 19 between Grupa Azoty, Polska Grupa Zbrojeniowa (PGZ), Agencja Rozwoju Przemysłu, and MESKO, with government officials also in attendance.

This agreement focuses on strengthening Poland’s ability to produce key materials for ammunition, such as nitrocellulose and multi-base powders, which are crucial for ammunition manufacturing. Grupa Azoty will play a role in this effort as part of its ongoing restructuring plan.