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Poland will increase production of how shellguns five times as the country tries to reduce its dependence on imported weapons and protect itself from the threat of Russia in the eastern part of the country, according to state assets minister Jakub Jorowski.
In an interview with the Financial Times, Jaworowski said the state-controlled defense group PGZ will receive 2.4 billion Zlotys ($663 million) in government funding “in the coming days” to increase massive ammunition production, addressing one of Poland’s most pressured defence shortages.
The purpose of this investment is to increase annual production of the 155mm shell guns used in NATO standard how shellguns, the 120mm shell group for tanks.
The Russian war in neighbouring Ukraine showed that “155mm ammunition plays a key role on modern battlefields and requires a large number,” Jaworowski said.
“The short-term goal is to significantly increase domestic production of this type of armed forces, to be independent of foreign supplies and to build a sustainable foundation for national autonomy. This is one of our priorities.”
Jaworowski: “The short-term goal is to significantly increase domestic production of this type of armed forces and become independent from foreign supplies.”
PGZ currently produces large rounds of around 30,000 per year, and is expected to increase in funds from 150,000 to over 180,000 per year by more than five times the annual rate within three years, as manufacturing is maintained within Poland to avoid reliance on imported components.
Poland is NATO’s largest defence ball, allocating the military to its troops to 4.7% of GDP in this year’s budget. However, much of this spending has so far been primarily directed towards overseas procurement in the US and South Korea.
Prime Minister Donald Tass’s government is now shifting its focus to domestic manufacturing, in line with broader European efforts to reduce dependence on the US and other foreign military suppliers.
While some European defense companies, including Germany’s Rheinmetall, have already increased ammunition production significantly, Poland continues to face an acute shortage, and industry delays have caused political scrutiny.
In April, Krzysztof Trofiniak suddenly resigned as PGZ chairman just a year later. This is reportedly related to concerns about production that have stalled movement. His resignation coincided with harsh warnings from Darius Ukovsky, director of Poland’s National Security Agency, but the current ammunition reserves will only maintain a week or two fighting in the case of Russian attacks.
PGZ’s funding is the approval of a public investment of 700 million euros to strengthen the country’s ammunition production capacity, following approval by the Polish Parliament in November.
Jaworowski said Grupa Azoty, Poland’s largest chemical group, has requested provincial funds to expand into the ammunition sector by producing key inputs such as propellants and nitrocellulose for explosives. Another domestic defense company, Niewiadów, is also seeking government funding to create a 155mm shell.
Jaworowski, who oversees a portfolio of companies in around 110 states, said Azoty is one of the companies in urgent need for a restructuring.
He attributes his financial difficulties in part to what he described as a poor, politically motivated investment decision made under the previous Law and Justice (PIS) government that was expelled in late 2023.
According to an audit since Tusk’s Pro-EU coalition came to power, state-owned businesses have accumulated a total loss of up to 5 billion euros due to mismanagement and fraud under the PIS, Jaworowski said. His ministry has submitted approximately 100 notices to prosecutors seeking criminal investigations.
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In the case of Azoty, Jaworowski said the group’s survival depends on securing approval from lenders for its restructuring plan. However, he said talks were delayed by the European Investment Bank, one of Azoty’s creditors.
“I was hoping that they (EIB) would jump into the opportunity and be the first to propose a restructuring plan,” Jaworowski said. “To my surprise, judging from our mission as a development bank, they weren’t as enthusiastic as I would expect, given how supportive a part of the entirely commercial bank is.”
However, the EIB said it is “actively engaged in efforts to put Grupa Azoty on a sustainable footing.” The Luxembourg-based bank has made “constructive proposals” but refused to provide details, citing the company’s listing status and ongoing negotiations.
