Both agreements will be financed through a European loan under the SAFE instrument, a major European Union initiative intended to strengthen the armed forces of member states and support the European defence industry.
According to PGZ Group, it has secured a new contract for 96 Krab self-propelled howitzers manufactured by Huta Stalowa Wola, a PGZ subsidiary. The agreement is valued at approximately EUR 1.9 billion and is scheduled to be completed by 2030. The contract also includes the delivery of a large number of accompanying support and logistics vehicles for artillery units equipped with Krab guns.
The Krab artillery system is a product of the Polish defence industry. It is currently operated by the Polish Land Forces and the Armed Forces of Ukraine. Following the start of Russia’s full-scale invasion of Ukraine, the Polish government donated 54 Krab artillery systems to Ukraine. Subsequently, in June 2022, Ukraine signed a commercial agreement with PGZ Group for a second batch of 54 guns.
According to the Armed Forces of Ukraine, Krab self-propelled howitzers have performed excellently on the battlefield and are among the key assets that have contributed to Ukraine’s defence.
PGZ describes the Krab howitzer as a modern, mobile artillery system equipped with a 52-calibre gun. According to the company, when using standard 155mm ammunition, the Krab is able to engage targets at distances of up to 40km. In addition, the system is adapted to fire next-generation rounds with extended range and precision-guidance capabilities.
The second contract secured by PGZ Group covers the production and delivery to the Polish Armed Forces of “several hundred thousand” 155mm artillery rounds. The exact number has not been disclosed by the Polish authorities. The ammunition will be produced by a consortium of PGZ Group subsidiaries.
The deal is valued at approximately EUR 3.2 billion, or PLN 13.5 billion. This is the second major contract for 155mm artillery ammunition signed by PGZ Group since February 2022. In December 2023, Poland’s defence procurement agency signed a contract with PGZ for 283,000 155mm artillery shells, with deliveries scheduled to be completed by the end of 2029.
