State-owned Polska Grupa Zbrojeniowa (PGZ) will receive government funding to upgrade facilities and streamline production lines. Defence assets minister Jakub Jaworowski said the investment is critical for increasing annual 155 mm shell output from 30,000 to as many as 180,000 rounds.

Output Targets and Timeline

Officials expect the expanded capacity to be fully operational within three years. The surge will cover Nato-standard howitzers and 120 mm tank rounds, ensuring that domestic manufacturers can meet both military needs and potential export demands.

Domestic Independence Drive

Poland, currently the largest per-capita defence spender in Nato at 4.7 percent of GDP, has depended heavily on imports from the United States and South Korea. The new strategy seeks to build a sustainable production base and reduce vulnerability to external supply chain disruptions.

Industry Challenges and Reforms

Grupa Azoty, the country’s biggest chemical producer, has applied for state support to start making propellants and nitrocellulose. The ministry is also reviewing restructuring plans for loss-making enterprises, following audits that uncovered billions in accumulated losses under the previous administration.

In November, parliament approved €700 million to enhance ammunition manufacturing nationwide. In April, PGZ’s chair resigned amid delays, and security officials warned that existing shell reserves would sustain only one to two weeks of combat in a major conflict.