PGZ Focuses on Domestic Production with 2030 Export Goals

<.div>

PGZ Structure and State-Backed Funding Stability

Polska Grupa Zbrojeniowa operates as the largest player in the Polish defence ecosystem, controlling between 50 and 60 subordinated companies, roughly half of which focus directly on defence production. According to company data, the group employs over 23,000 personnel across more than 100 sites, with 1,500 staff dedicated to research and development. The enterprise spans seven core business domains, covering armoured vehicles, artillery, wheeled platforms, electronics, anti-air systems, ammunition, missile technology, naval systems, and uniformed services equipment.

Defence funding has reached unprecedented stability following Poland’s inclusion in the European Union’s Security Action For Europe (SAFE) initiative. Speaking during a study tour organized by the Polish Investment and Trade Agency (PAIH), Jan Grabowski stated that the Polish Republic secured over €44 billion through the SAFE programme, making it the initiative’s largest beneficiary. Approximately 90% of those funds are channeled directly into the domestic defence industry to support 69 distinct projects, predominantly executed by PGZ companies. This European injection pairs with national allocations to create a confirmed four-to-five-year budget cycle.

Expanding 155mm Artillery Ammunition Production

High consumption rates of artillery ammunition in Ukraine have driven urgent industrial expansion across PGZ facilities. According to company disclosures, five to six distinct group companies contribute to the manufacturing of 155mm rounds. Mesko produces shells in Kraśnik alongside the Bi-Modular Charge System in Pionki in cooperation with Eurenco, while Dezamet handles artillery fuses and round filling in Nowa Dęba. Additional supply chain contributions come from Nitrochem for nitrocellulose, ZPS Gamrat for base-bleed and gas-generator units, and Belma for electromechanical components.

Alongside domestic scaling, PGZ is pursuing joint ventures and international agreements to secure critical components. The group collaborates with Slovakia’s ZVS Holding for ammunition subassemblies and has established a joint venture with France’s Eurenco for energetic products. Furthermore, PGZ signed a strategic cooperation agreement with Britain’s BAE Systems and a Memorandum of Understanding with Turkey’s MKE to co-produce 155mm ammunition for Poland, the UK, and export markets, though Mr. Grabowski noted that achieving full independence in this domain remains a long-term objective.

Air Defence, Missile Systems, and Naval Contracts

Demand for combat-proven systems has accelerated international interest in PGZ equipment, particularly the Piorun very-short-range air defence man-portable missile system. Produced by Mesko in Skarżysko-Kamienna, the weapon features a 6.5 km range and a 4,000-metre ceiling. A production contract finalized in late August 2026, valued at approximately 8 billion PLN (€1.86 billion) and funded under the SAFE scheme, supplies several thousand missiles and hundreds of launchers to Poland, Lithuania, Latvia, and Norway. Export agreements have also been established with Belgium and the Netherlands, alongside reported interest from French Special Forces.

In the naval sector, PGZ is executing the Miecznik-class frigate programme under a partnership with Babcock International Holdings of the UK. The first vessel, named Wicher and based on Babcock’s Arrowhead 140 design, was launched in Gdynia on August 13, 2026. The shipyard project incorporates technology and components from international primes, including Lockheed Martin, MBDA, Thales, Thales UK, and Thales Netherlands. Similarly, PGZ is cooperating with MBDA UK to produce the CAMM missile locally and develop a short-range ground-based air defence system.

Long-Term Export Strategy and International Partnerships

Currently, the vast majority of PGZ defence production is allocated to the Polish Armed Forces, a domestic priority projected to hold steady through 2030. Beyond this decade, the group plans to expand its global footprint through localized manufacturing and technology transfers. PGZ has tested its Rosomak 8×8 armoured vehicle in the Kingdom of Saudi Arabia and pursued discussions regarding the Baobab-K mine-scattering system—a platform already fielded by Polish Land Forces and backed by €500 million in SAFE funding. Similar manufacturing and final integration talks are underway with Indian industrial partners.

Cooperation also extends to complex counter-unmanned aerial systems (C-UAS). As the prime contractor for the SAN (System Anti-Dronowy) counter-UAS project funded through a 15 billion PLN (€3.4 billion) SAFE allocation, PGZ integrates gun turrets from Norway’s Kongsberg, Leonardo X-Gun systems from Italy, radars from Denmark’s Weibel, and contributions from private Polish firms.

Frequently Asked Questions