Polish politicians have been emphasizing the need to expand domestic production capacities for several years, with the issue becoming particularly urgent after the outbreak of the war in Ukraine in 2022.
In December 2023, an agreement was signed under the "National Ammunition Reserve" program, which includes the delivery of over 280,000 shells by the end of 2029 to help boost ammunition production capabilities.
Additionally, at the end of last year, a law was passed to finance efforts to increase these capabilities, with the Ministry of Defense transferring 2 billion PLN (approximately 480 million EUR) to the Capital Investment Fund.
By the end of June, another 1 billion PLN (approximately 240 million EUR) is expected to be added to the fund from the Government Strategic Reserves Agency.
In exchange for these investments, ammunition-producing companies will be recapitalized.
Currently, PGZ is in the final stages of selecting a foreign partner to acquire a license for ammunition production, with three options under consideration: the French-German KNDS, the Turkish MKE, and the Czech-Slovak CSG.
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Source: IAR/Rzeczpospolita/X/@rzeczpospolita