Polish Armaments Group PGZ to Build Three Large-Calibre Ammo Factories Making Poland a Key NATO Supplier.

On July 2, 2025, Polish Armaments Group’s (PGZ) plan to build three new ammunition factories positions Poland as a central European powerhouse in munitions production and a more reliable NATO supplier, as reported by Defense Industry Europe. Against the backdrop of the US halting ammo deliveries to Ukraine, this move marks a decisive step to reduce dependency on American stockpiles. With a state investment of nearly PLN 2.4 billion (€565.9 million), Poland seeks to fortify its role in supporting allied forces and regional deterrence against Russian aggression.
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By establishing three new ammunition plants, Poland is not only building industrial muscle but reshaping Europe’s defence landscape (Picture source: PGZ)

Poland’s decision to channel substantial state assets into its domestic arms industry holds major strategic implications. Geopolitically, Warsaw is signalling its intent to anchor NATO’s eastern flank with robust sovereign capabilities, limiting vulnerabilities that arise when relying too heavily on US arsenals at a time of shifting American priorities. Militarily, the expansion from a current output of 20,000 to an expected 150,000–180,000 large-calibre shells per year will significantly strengthen both national reserves and the alliance’s collective resilience. The 155mm calibre, in particular, is crucial for modern artillery systems heavily used by Ukraine and NATO partners alike.

As the war in Ukraine drags on and global stockpiles come under unprecedented strain, NATO’s dependence on a single major supplier for critical ammunition has proven increasingly risky. The recent American announcement to halt certain ammunition deliveries to Kyiv exposed structural vulnerabilities in Europe’s ability to sustain high-intensity conflict over time. This new investment by Poland directly responds to that gap, ensuring that Europe can stand shoulder-to-shoulder with the United States in supplying large-calibre munitions when allies need them most. For NATO to maintain credible deterrence and guarantee collective defence, it must develop robust, diversified production capacity across multiple member states, Poland’s initiative is therefore a cornerstone in rebalancing this transatlantic burden.

The multi-billion-zloty budget—allocated through the Capital Investment Fund—underscores Poland’s broader ambition to reach self-sufficiency in key ammunition types within three years. By investing in Dezamet, Mesko, Nitro-Chem, and Gamrat, PGZ ensures new infrastructure and advanced technological lines will boost output by the end of 2027. This large-scale commitment is a calculated answer to Europe’s urgent need for munitions following Russia’s full-scale invasion of Ukraine, while also boosting Poland’s industrial base and local employment.

By establishing three new ammunition plants, Poland is not only building industrial muscle but reshaping Europe’s defence landscape. This project places Warsaw at the centre of NATO’s ammunition supply chain, bolstering collective deterrence and sending a clear message that Europe’s security cannot remain overly reliant on US policy swings. The new capacity will make Poland a linchpin in meeting NATO’s growing operational demands while enhancing its own strategic autonomy in a volatile security environment.