Billions for Ammunition Production. “The Flywheel of the Economy”

At the headquarters of the Ministry of State Assets, the minister Jakub Jaworowski, PGZ president Adam Leszkiewicz, and PGZ first vice‑president Arkadiusz Bąk signed four investment agreements supporting the production of large‑caliber 155 mm and 120 mm ammunition.

Funding will go to four subsidiaries of PGZ. The largest share, PLN 1.358 billion, will be allocated to Dezamet for expanding its large‑caliber ammunition production capacity. Mesko will receive PLN 887.2 million to boost its capacity for manufacturing 155 mm shells; Nitro‑Chem will get PLN 113 million to purchase production lines for 155 mm large‑caliber ammunition; and ZPS Gamrat will obtain PLN 66.17 million to build facilities for producing base bleed systems (used in projectiles with ranges of approximately 40 km and beyond). 

Minister Jaworowski emphasized that the first tranche of funds is to be released this month, and that an annual production capacity of 150,000 large‑caliber rounds will be achieved by the end of 2027. PGZ president Adam Leszkiewicz stated that the Ministry of State Assets« decision will enable a „rapid and significant” increase in production capacity in such an important area as 155 mm ammunition, while PGZ’s first vice‑president added that the funds will be used to build three ammunition factories. Present at the signing, Deputy Minister of National Defence Paweł Bejda stressed that his ministry is striving for full „Polonization” and independence in ammunition production in Poland, and that the defence industry has the potential to become a flywheel of the economy.

The funding for ammunition production will be channeled through the Capital Investments Fund. At the end of last year, following the enactment of a special law, the Ministry of National Defence transferred PLN 2 billion from its 2024 budget to the Ministry of State Assets, which then contributed these funds to the Capital Investments Fund (FIK). It is worth noting that this required special legislation, as the Ministry of National Defence ordinarily has no mechanism to subsidize the expansion of production capacity. The remaining funds (at least PLN 1 billion of a total PLN 3 billion) are to be provided next by the Governmental Strategic Reserves Agency in the form of government securities. PGZ submitted its PLN 2.4 billion FIK funding application in March of this year, somewhat later than originally planned.

Currently, PGZ is executing a contract for the delivery of approximately 280,000 rounds of 155 mm ammunition, signed back in December 2023, with deliveries scheduled through 2029.