Record contract for 155 mm ammunition for the Polish army

On December 22, the PGZ-Amunicja Consortium and the Armament Agency concluded an executive agreement for the supply of nearly 300,000 pieces of 155 mm artillery ammunition implemented under the National Ammunition Reserve program. This is a historic contract both in terms of the size of the order and its value of nearly PLN 11 billion. Ammunition deliveries will take place in 2024-2029.

The signed document is a consequence of the framework agreement  concluded on June 1, regarding the delieveries of up to one million pieces of ammunition of various types and calibers for the needs of the Polish Army by 2029. The conclusion of the framework agreement was the beginning of the change in the method of contracting ammunition supplies by the Armament Agency, which allowed the companies belonging to the PGZ-Amunicja Consortium to plan the long-term production cycle and plans to further increase production capacity. Thanks to this, the PGZ ammunition domain – the only entity with such diversified competences on the Polish market – will supply the army with ammunition in annual quantities exceeding the volume of all orders received from the army in the last ten years.

– The ammunition domain of the Polska Grupa Zbrojeniowa is the largest and proven domestic supplier of ammunition and munitions for the Polish Army. Thanks to recent investments in infrastructure, production lines and increased employment, we have been able to significantly increase our production capacity. This is our response to the needs of the ammunition market, reported both by the Polish army and foreign contractors. Since the outbreak of the war in Ukraine, the demand for ammunition, especially artillery, has suddenly increased. Thanks to our actions, we can meet this demand. This is largely due to all people involved in planning the development of companies and those directly involved in production. On the occasion of this historic agreement, they deserve special thanks for the titanic work that made this success possible – said Sebasian Chwałek, president of the management board of PGZ S.A.

A signed contract for the supply of nearly 300,000 pieces is not the first contract for 155 mm ammunition carried out by the companies of the PGZ Capital Group for the needs of the Polish army. In 2022, ammunition companies completed the implementation of the previous multi-year contract for the production of ammunition of this caliber, concluded by ZM Dezamet S.A. in 2019.

The PGZ-AMMUNICJA consortium, to which this order is being placed, was established on April 28, 2023, due to the expected invitations to negotiations by the Armament Agency for the supply of large-caliber ammunition. In such a short time since its establishment, it has confirmed its competences and is ready to absorb funds from the National Ammunition Reserve to increase production capacity. During this period, several conditions were met, the competences of the companies were confirmed, and the distribution of production in several places at the PGZ Group plants will meet the expectations regarding the diversification of production locations, necessary not only due to the need to increase production potential, but also for safety reasons. The consortium hopes that in the coming months further contracts will be concluded, not only for 155 caliber ammunition, but also for 120 mm mortar and tank ammunition. PGZ-Amunicja is the only entity in Poland that can fulfill such orders using its own production potential. Cooperation with foreign partners will, of course, be necessary – like in the field of modular cargo technology – in addition to support in deliveries, which will guarantee the expansion of production potential in Poland. The potential created within the state-owned company is a guarantee of supplies and systematic support for the Armed Forces, which is important for the country’s security.

The PGZ-Amunicja consortium consists of five companies belonging to the ammunition domain of the PGZ Group: Mesko S.A., Zakłady Metalowe Dezamet S.A., Zakłady Chemiczne Nitro-Chem S.A., Gamrat sp. z o.o. and Bydgoskie Zakłady Elektromechanne Belma S.A.