In 1920, Poland opened its first ammunition factory, supplying soldiers who successfully defended the country’s newly reclaimed independence against the Soviet invasion Red Army.
A century later, the same manufacturer is struggling to contribute again to Polish efforts to dodge Russian attacks by increasing weapons production, reducing dependence on the US, and helping Ukraine resist the invasion of Vladimir Putin by supporting Ukraine.
Niwadow’s factory in central Poland reflects the decline in the country’s manufacturing since the end of the Cold War. Its 80 hectares of site are dotted with abandoned test areas and abandoned buildings that were once used to make Soviet weapons, including S-5 rockets fired by Moscow aircraft during the war in Afghanistan in the 1980s.
Niewiadów executives complain that IT and other small manufacturers are being sidelined by the Polish Armed Forces Group (PGZ), a vast state-run conglomerate that not only are things that are essential, like boots and helmets, but also to meet some basic needs of the military.
“It’s not my personality to say that everyone before me and everything was wrong, but in this case they really failed — they didn’t develop the Polish arms industry,” Wwadisu Siniak Kamisi told the Financial Times earlier this year.
Poland’s manufacturing problems arise despite the fact that Warsaw leads NATO to military spending, allocating equivalent to 4.7% of GDP in this year’s budget. Domestic production has also become a priority for Poland’s EU partners, and is eager to reduce their dependence on the US following President Donald Trump’s criticism of European allies.
władysławkosiniak-kamysz will be attending the opening of the 114th Light Infantry Battalion military complex © Dominika Zarzycka/sopa/Lightrocket will fight vehicles through vehicles through vehicles through Getty Images’ combat vehicles during the Getty Images’ military parade during the Day military parade of Waruso.
Poland’s difficult struggle was highlighted last month when Kurzishtov Trofiniak resigned as chairman of the PGZ after only a year in charge. Neither the PGZ nor the Ministry of Defense answered questions about why Trofiniak left when he was leading the drive to boost defensive manufacturing in Poland.
Trofiniak was the 10th PGZ boss since it was founded in 2013 as the national champion, grouping around 50 manufacturers under the previous Tusk government.
“Performing the PGZ is one of Poland’s worst jobs,” said a former defense official who requested anonymity. “You’re chosen as a politician and will be removed whenever a scapegoat or change of political power is required.”
Still, there are some bright spots.
Last month, Deputy Defense Minister Cezary Tomczyk welcomed the PGZ’s $310 million contract and delivered 18,000 tonnes of TNT to US Army suppliers. “We’ve been announcing that we’re buying military equipment from the US. Today we’re selling products to American companies,” he said.
The Tusk government is also asking foreign manufacturers to move their production and know-how to Poland. Last week, Polish company WB Group and South Korean Hanwha formed a joint venture to make rockets in Poland, which they previously used to launch the Chunmoo gun, which Warsaw acquired. British company Babcock expanded its partnership with PGZ to build a frigate in Poland Yard.
PGZ can also claim some production achievements. Designed the Krab Howitzers used in the Ukrainian war, and last month sold the Polish Army 111 Borsk Fighting Vehicle. EU defence commissioner Andrius Kubilius praised Borschuk for “show us the right example.” “We are purchasing Polish to expand our defense,” Kvilius told the Warsaw Security Conference.
However, most industry experts say that Borsuk cannot cover the drawbacks of other PGZs, especially the output of its ammunition. Last month, Darius Ukovsky, who heads Poland’s National Security Agency, warned that current ammunition supply would only allow Poland to fight against Russian attacks for a week or two.
Dariusz Szlafka, Managing Director Niewiadów, Hall with 155mm Shell potentially becoming producer
At Niewiadów, managing director Dariusz Szlafka, who joined from PGZ last year, said it has something to do with producing ammunition “in homeopathic amounts” for a constant management rotation of the PGZ. He was working on plans to build a 155mm gunboat factory that began in 2014.
Niewiadów was acquired from bankruptcy by Works11, a defense contractor founded by Michał Lubiński in 2019. He transferred ownership to his sister, and he has fought lawsuits on bribery charges, which he says are part of a politically motivating campaign by the previous government.
Lubiński blames PGZ for preventing Niewiadów from growing faster than annual revenues by lobbying lobbying manufacturers to not fund non-PGZ projects. Instead of supplying the Polish army, Niewiadów will begin production of 60.7mm mortar ammunition in June as a subcontractor of Slovak defense company.
It argued that the PGZ’s near-monopoly position could “wash a lot of money in a sector driven by politics rather than markets,” which is isolated from actual competition.
Jarosław Kruk, a managing partner at KW Kruk, a Warsaw law firm working in the defense sector, said one of his clients supplies radar components to Germany, Belgium and the Netherlands but failed to win domestic orders. Kruk said contract requirements for the Polish Army are at least three times more difficult for privately owned suppliers than PGZ.
“In my opinion, our lovely Polish military believes that, despite some private companies producing very interesting products, only state-owned companies can meet their needs,” says Kruk. “The PGZ has always promised anything politicians and the Army people wanted, but it was almost entirely a promise.”
Deputy Defense Minister Tomczyk has called for 50% of military equipment budgets to go to Polish manufacturers. But to achieve that goal, military procurement will need to be opened, says RafałBrzoska, a billionaire entrepreneur who advises Tusk on deregulation. “In Poland, nothing is produced by private companies,” Brzoska said. “In the US, the F-35s (aircraft) and everything else are made by private companies, not by states.”
Task’s government continues to buy American weapons despite worrying about Trump’s settlement with Russian President Vladimir Putin. Over the past month, Poland has sealed off a $2 billion deal to bolster the US Patriot Air Defence System and purchased a $1.3 billion air-to-air missile from Washington.
“Our politicians can give public speeches about making everything more Polish, but when they receive a private call from Washington, they sign a contract with the US,” says Kruk. “We love Americans and their military and I really think we will continue to be completely dependent on them.”
