By Cristina Gallardo

Arms manufacturers BAE Systems and Polska Grupa Zbrojeniowa partnered to build a new 155mm artillery ammunition plant in Poland, in a bid to boost the country's production.

The deal will see BAE transferring technology and know-how to PGZ, and help Poland grow its supply chain, BAE said Friday.

Demand for this type of ammunition has surged globally since Russia's large-scale invasion of Ukraine in February 2022. Allies of The North Atlantic Treaty Organization are supplying ammo in large quantities to Kyiv while rushing to replenish their domestic stockpiles. This has prompted calls for increased manufacturing capacity across Europe.

The BAE-PGZ partnership, which has been in the works for some time, comes days after Polish and Dutch warplanes shot down Russian drones that entered Poland's airspace, an incident that injected fresh urgency into Warsaw's efforts to build up their defenses.

"This is not only important for Poland's own national defence but will also help to enhance its contribution to securing NATO's eastern flank," BAE Chief Executive Charles Woodburn said.

The plant, which the companies expect to be up and running by 2027-28, will increase Poland's sovereignty by reducing its reliance on imported shells, said Scott Jamieson, managing director of BAE's Maritime and Land Defence Solutions business. BAE could replicate this model of partnership with other partners in Europe, he added, without naming any.

The U.K. and Poland have deepened their military cooperation, and in January announced the launch of negotiations for a new bilateral defense and security treaty.

BAE's shares have advanced 72% year-to-date, and on Friday traded 1.5% higher at 19.76 pounds.

Write to Cristina Gallardo at cristina.gallardo@wsj.com

(END) Dow Jones Newswires

September 12, 2025 06:14 ET (10:14 GMT)

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