Poland is increasingly shifting its defence procurement strategy toward domestic and Central European production as it builds one of Europe’s largest armies and seeks to reduce dependence on distant suppliers. The move reflects Warsaw’s growing concern over Russia and lessons from the Ukraine war, which exposed the vulnerability of long and heavily concentrated defence supply chains.
Rising Domestic Defence Spending
Polish procurement from domestic defence companies, including joint ventures with Central European firms, reached 30.4 billion zlotys ($8.15 billion) last year, almost four times the level recorded in 2022. Warsaw views domestic production not only as an economic opportunity but increasingly as a matter of national security and supply chain resilience.
Poland is expected to spend around €53 billion ($61.45 billion) on core defence expenditure this year, equivalent to about 4.7% of GDP. The country has prioritised military expansion because of its proximity to Ukraine and its assessment that Russia represents an existential security threat.
Deputy State Assets Minister Konrad Golota said Poland is building Europe’s largest land army and that the ability to manufacture equipment domestically is becoming increasingly important.
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Balancing U.S. Systems With Local Production
Poland continues to rely heavily on advanced U.S. military systems, including Patriot air defence batteries, Abrams tanks and F 35 fighter jets. However, officials increasingly want frequently used equipment such as ammunition, drones and other battlefield systems to be produced closer to home.
The Ukraine war has demonstrated how rapidly modern warfare can consume ammunition and equipment. For Warsaw, maintaining domestic manufacturing capacity could therefore ensure that supplies can be sustained during a prolonged conflict or a disruption to international supply chains.
Defence Minister and Deputy Prime Minister Wladyslaw Kosiniak Kamysz described supply chain independence as essential to ensuring that Poland could maintain supplies to the front line if required.
Central Europe Becomes a Defence Manufacturing Hub
Poland’s strategy is also creating opportunities for defence companies across Central and Eastern Europe. Firms from countries such as the Czech Republic, Slovakia and Hungary previously had a more limited presence in the Polish market, but Warsaw’s procurement shift is encouraging greater regional cooperation.
Czech defence company CSG, a major ammunition supplier to Ukraine, has signed several agreements to expand its manufacturing footprint in Poland. These include transferring propellant production technology to PGZ subsidiary MESKO and cooperating with PGZ on drones, missiles, ammunition and armoured vehicles.
CSG’s Polish subsidiary has also acquired defence component manufacturer Domar MS. The company has separately signed agreements worth more than €100 million with PGZ’s Dezamet for components used in 155 mm artillery ammunition and €150 million with Huta Stalowa Wola for fighting vehicle equipment.
Near Shoring Defence Production
Other European companies are following the same trend. Polish arms manufacturer Grupa Niewiadow is establishing 155 mm ammunition production with KNDS Ammo France, with annual output expected to reach 180,000 rounds from next year.
PGZ is also cooperating with Estonia’s Frankenburg Technologies on manufacturing ultra short range air defence systems in Poland.
Defence experts describe the trend as a form of “near shoring”, in which European countries bring critical defence production closer to the countries that will use it. The strategy is intended to improve resilience while maintaining NATO interoperability.
Germany and Other Regional Partners
Germany’s Rheinmetall is also expanding its presence in Poland. The company said growing demand from Poland’s military modernisation programme was one reason it was establishing production capacity in the country and developing a regional maintenance and repair hub for land combat systems.
Warsaw is also discussing deeper defence industrial cooperation with Slovakia and Hungary, further strengthening the emerging Central European defence production network.
Building Strategic Autonomy
Poland’s armed forces have surpassed 220,000 personnel, making them one of Europe’s largest military forces. Warsaw is also among the NATO members moving closest toward the alliance’s goal of spending 5% of GDP on defence by 2035.
The country is simultaneously seeking greater involvement in the production of sophisticated systems. Poland has offered to cooperate with Ukraine and the United States on jointly producing missiles for the Patriot air defence system.
The broader strategy does not mean Poland is abandoning U.S. defence technology. Instead, Warsaw is attempting to combine major foreign weapons acquisitions with a stronger domestic industrial base and regional production network.
For Poland, the objective is increasingly clear: foreign equipment remains important, but critical supplies, manufacturing capacity and technological know how should increasingly be available within Poland and its European neighbourhood.
With information from Reuters.
