Defense companies from Germany, South Korea, Turkey, and France are competing to establish a joint ammunition manufacturing venture with Poland, which is expected to be finalized within the next three to four months, Deputy Defense Minister Cezary Tomczyk told Reuters. Beyond bolstering Poland’s defense industry, the agreement could pave the way for deeper strategic government-to-government cooperation.
Poland has taken a leading role in Europe's rearmament efforts, especially following U.S. President Donald Trump’s signals of reduced American commitment to European security and his overtures toward Russia, which remains engaged in war with Ukraine on Poland’s eastern border.
To strengthen its defense capabilities, Poland has allocated $750 million to its state-owned Polish Armaments Group (PGZ) to expand production. A key priority for Warsaw is securing full ownership of the technology and licenses for the ammunition produced through the joint venture, particularly 155mm artillery shells.
Surge in Demand for Artillery Shells
The demand for 155mm rounds has skyrocketed since Russia’s full-scale invasion of Ukraine, rapidly depleting European stockpiles as NATO allies continue supplying Kyiv. PGZ aims to ramp up its annual production capacity—currently insufficient—to 150,000 shells within two to three years.
Among the bidders, Turkey’s state-owned defense firm MKE recently visited Warsaw with an offer that includes a full transfer of 155mm ammunition production technology—an aspect the Polish Defense Ministry views as a strong match for its needs.
Strategic Considerations in Partner Selection
Tomczyk emphasized that Poland is not just evaluating technological benefits but also looking for potential long-term defense partnerships. Countries including Germany, France, Sweden, and the UK have expressed interest in a broader defense cooperation package beyond ammunition production.
"This makes the partnership more attractive, as it allows us to secure multiple capabilities while forging a powerful political alliance," Tomczyk explained.
Increased Defense Investment
On Tuesday, Poland announced that it would allocate 30 billion zloty ($7.71 billion) from its European Union post-pandemic recovery funds to defense. Additionally, Warsaw stands to gain significantly if the European Commission’s proposed €150 billion rearmament fund is approved.
With Poland aggressively expanding its defense production and seeking strong international partnerships, the upcoming ammunition joint venture could mark a pivotal step in reshaping Europe’s security landscape.