Polish defence holding company becomes leader in European ammunition market

The Polish holding company PGZ (Polska Grupa Zbrojeniowa) said it has become a leader in the European ammunition market, PGZ Head Sebastian Hvalek said on Polskie Radio.

"I am convinced that we not only have a chance to become a leader in the European arms market, but we have already achieved this. This is confirmed, for example, by the March visit to Poland of European Commissioner Thierry Breton, who visited the EU countries that produce ammunition," he said, Ukrainska Pravda reports.

The head of the concern added it was then that the European Commissioner stressed that Poland has one of the largest production capacities and should play a key role in the supply of ammunition under EU orders.

In June, the PGZ signed a contract with the Polish Ministry of Defence for the supply of one million units of artillery shells. Hvalek says the conclusion of the transaction is a real breakthrough.

He noted that PGZ has been increasing its production capacity for more than three years now.

In the spring, EU member states promised to increase the supply of artillery shells to Ukraine, as Ukrainian forces faced a shortage of badly needed ammunition.

The countries agreed on a plan worth EUR 2 billion, which provided for the supply of ammunition from their stocks and the placement of joint orders for the production of shells. The goal was to transfer a million shells to Ukraine within 12 months.

In July, the Council of the European Union and the European Parliament have agreed on a draft regulation Act in Support of Ammunition Production (ASAP), which provides for the production of up to one million projectiles per year.