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Poland to invest $665 million to boost ammunition output
Published by Global Banking & Finance Review®
Posted on July 2, 2025
2 min readLast updated: January 23, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on July 2, 2025
2 min readLast updated: January 23, 2026
Poland is investing $665 million to build three ammunition factories, enhancing defense capabilities amid rising European security concerns.
WARSAW (Reuters) -Four companies of the Polish Armaments Group (PGZ) will receive 2.4 billion zlotys ($664.80 million) in financing from the state assets ministry for a project to build three ammunition factories, the ministry said on Wednesday.
Poland is leading a European push to boost its defence readiness to deter any possible attack from Russia and to be less dependent for security on the United States.
The ammunition factories will include the manufacture of 155 mm artillery shells, demand for which has soared since Russia's full-scale invasion of Ukraine, and as European stocks have declined due to additional supply of shells to Kyiv.
Russia's invasion of Ukraine, launched in February 2022, has heightened security concerns among neighbouring countries, prompting increased defence measures. The conflict has unsettled the region, leading nations like Finland and Sweden to seek NATO membership.
The PGZ wants to scale up annual production capacity of ammunition to 150,000 shells in two to three years.
"From 150,000 shells upwards from 2028, or from the end of 2027. This is our goal," PGZ head Adam Leszkiewicz said on Wednesday.
Current capacity is considered "insufficient", the PGZ has said, without revealing specific detail.
"Our goal is to scale up as soon as possible domestic production of this kind of ammunition which is key on the modern battlefield," State Assets Minister Jakub Jaworowski was quoted as saying in a statement.
($1 = 3.6101 zlotys)
(Reporting by Barbara Erling; writing by Anna Wlodarczak-Semczuk; Editing by Rachna Uppal)
Poland is investing 2.4 billion zlotys, which is approximately $664.80 million, to enhance its ammunition production capacity.
The new ammunition factories will manufacture 155 mm artillery shells, which have seen increased demand since Russia's invasion of Ukraine.
The Polish Armaments Group aims to scale up annual production capacity to 150,000 shells within two to three years.
Poland is increasing its ammunition production to enhance its defense readiness against potential threats from Russia and to reduce dependency on U.S. security.
Russia's full-scale invasion of Ukraine has heightened security concerns in the region, leading to increased defense measures among neighboring countries.
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