The technology supplier was chosen based on several key factors, including autonomy in production, supply chain sovereignty, and the ability to fully utilise PGZ’s existing capabilities. According to PGZ, “The partnership is not only intended for this project, but also for the coming decades, including expansion into external markets and the development of a business model based on equality between partners.”
The project is supported by a 2.4 billion PLN subsidy granted by the State Treasury. PGZ also plans to launch other ventures related to the production of multi-base propellants and high-energy materials.
As outlined in PGZ’s announcement, the first facility will produce 155mm ammunition using current technology and in cooperation with existing partners. The production scale is expected to increase significantly, reaching up to 100,000 rounds annually.
The second plant will focus on next-generation ammunition for Krab, Krab-2, and K9 self-propelled howitzers, with production capacity planned at up to 80,000 units per year. Both plants will also manufacture other types of large-calibre ammunition, including 120mm rounds, likely for tank and mortar use.
The third facility, referred to as the “Powder Plant”, will serve as a centre for the production of new-generation propellants and propelling charges. PGZ intends to apply for funding from the Capital Investment Fund in the coming weeks to support this third investment.
The allocated funding will enable infrastructure development, production optimisation, and increased supply of complete ammunition to the Polish Armed Forces. Investments will include building expansion, and procurement of specialised machinery and equipment.
As a result of this financial support, PGZ will increase output of large-calibre ammunition bodies, gas generators for extended range, and explosive shell filling. By 2028, PGZ aims to achieve a production capacity of 150,000 to 180,000 rounds of 155mm artillery ammunition per year.
