Poland increases production of howitzer shells amid growing threat from Russia
Kyiv • UNN
Poland will invest 2.4 billion zlotys in the state defense group PGZ to increase the production of 155-mm and 120-mm artillery shells fivefold. This will reduce dependence on imports and strengthen the country's defense capabilities.
Poland will increase the production of howitzer ammunition fivefold. This is due to the country's desire to reduce dependence on imported weapons and protect itself from the Russian threat in the east, reports Financial Times, citing Minister of State Assets Jakub Jaworowski, writes UNN.
Details
In an interview with the Financial Times, Jaworowski stated that the state-owned defense group PGZ will receive 2.4 billion zlotys ($663 million) in state funding "in the coming days" to increase the production of large-caliber ammunition and address one of Poland's most acute defense shortages.
The investments aim to increase the group's annual production of 155-mm artillery shells, used for NATO-standard howitzers, and 120-mm tank shells.
Russia's war in neighboring Ukraine has shown that 155-mm ammunition plays a key role on the modern battlefield and is needed in large quantities. Our short-term goal is to significantly increase domestic production of this type of weaponry, as well as become independent of foreign supplies and build a stable foundation for national autonomy. This is one of our priorities
Currently, PGZ produces about 30,000 large-caliber shells per year, and the funding is expected to increase this figure more than fivefold to 150,000–180,000 annually within three years, with production remaining in Poland to avoid dependence on imported components.
Poland is proportionally the largest defense spender in NATO, allocating the equivalent of 4.7% of its GDP to military needs in this year's budget. However, a significant portion of these expenditures has so far been directed to procurements from abroad, mainly from the United States and South Korea.
Prime Minister Donald Tusk’s government is now shifting its focus to domestic production, in line with broader European efforts to reduce reliance on the US and other foreign military suppliers.
While some European defense companies, including Germany's Rheinmetall, are already significantly ramping up ammunition production, Poland continues to face acute shortages, and industry delays have attracted political attention.
In April, Krzysztof Trofiniak abruptly resigned as head of PGZ after just one year, reportedly due to concerns about production stoppages. His resignation coincided with a stark warning from Dariusz Lukowski, head of Poland's National Security Bureau, that current ammunition stockpiles would last only one to two weeks of fighting in the event of a Russian attack.
The funding for PGZ comes after the Polish parliament approved 700 million euros in state investments in November to strengthen the country's ammunition production capabilities.
Jaworowski said that Grupa Azoty, Poland's largest chemical group, also requested state funds to expand its activities in the ammunition sector by producing key materials such as rocket fuel and nitrocellulose for explosives. Niewiadów, another Polish defense company, is also seeking state funding to produce 155-mm shells.
Jaworowski, who oversees a portfolio of about 110 state-owned enterprises, said Azoty was among the companies urgently needing restructuring.
He partly attributed the group's financial difficulties to what he called poor and politically motivated investment decisions made under the former Law and Justice (PiS) party government, which was removed at the end of 2023.
According to audits conducted since Tusk's pro-European coalition came to power, state-owned companies have accumulated cumulative losses of up to 5 billion euros due to mismanagement and fraud, Jaworowski said. His ministry has filed about 100 reports with the prosecutor, demanding investigations into criminal cases.
In the case of Azoty, Jaworowski said the group's survival depends on creditors approving a restructuring plan that could include increasing the state's stake from 33% to 49%. However, he said negotiations had been delayed by the European Investment Bank, one of Azoty's creditors.
I expected them (the European Investment Bank - ed.) to be the first to take advantage of this opportunity and propose a restructuring plan. My surprise was that they are not as willing as I expected, judging by their mandate as a development bank and considering how supportive some fully commercial banks are.
But the EIB stated that it is "actively involved in efforts aimed at ensuring the sustainable development of Grupa Azoty." The Luxembourg-based bank added that it had made "constructive proposals" but declined to provide details, citing the company's listed status and ongoing negotiations.
Addition
European NATO countries are increasing defense spending, but are spurning American weapons. This is due to concerns about the policies of US President Donald Trump, who has already threatened to annex European territory.