PGZ Group partners with BAE Systems to build 155mm munitions factory in Poland

By Defence Industry Europe

Polish Armaments Group (PGZ) and BAE Systems have signed a strategic partnership to establish a new 155mm artillery ammunition factory in Poland, aimed at boosting the nation’s production of battlefield munitions. The project will see BAE Systems transfer technology and expertise to PGZ, supporting NATO’s eastern flank and creating hundreds of skilled jobs in Poland.

 

The new plant will adopt the same automated technology currently in use in the UK, enabling a sixteen-fold increase in production capacity of 155mm shells. BAE Systems highlighted that its ammunition, compliant with NATO standards, has been a core part of the British Army’s firepower for more than 50 years.

Charles Woodburn, BAE Systems Chief Executive, 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 the Management Board of PGZ SA, said: “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.”

Global demand for artillery ammunition has risen sharply over the past three years, with 155mm shells vital for Poland’s K9 and Krab self-propelled howitzers. PGZ plans to scale up production to between 150,000 and 180,000 shells annually to meet national defence needs.

 

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UK Defence Secretary John Healey MP said: “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.”

Construction of the facility will begin this year, with completion expected by 2027 or 2028. The agreement builds on the UK Government’s Strategic Defence Review, which prioritised closer defence industrial cooperation with Poland.

 

 

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