40 MM AMMUNITION FACTORY

AN INVESTMENT WORTH 70 MILLION PLN

Proguns Group S.A., together with the Niewiadów-PGM S.A. Group and ZSP Niewiadów Sp. z o.o., are carrying out a PLN 67.4 million investment project aimed at launching a modern 40 mm ammunition factory in Niewiadów. The project will be carried out using technology provided by the Singapore-based company ST Engineering Advanced Material Engineering Pte. Ltd.

The investment includes technology transfer, the development of production capacity, and the launch of production at the subsidiary Fabryka Amunicji Pocisk S.A., in which the Niewiadów-PGM S.A. Group will ultimately become the majority shareholder. The implementation of this project represents a significant step in developing domestic capabilities in the production of modern ammunition and strengthening the potential of the Polish defense industry.

ACCORDING TO DATA FROM THE EUROPEAN DEFENSE AGENCY AND THE NATO INDUSTRIAL ADVISORY GROUP'S 2024 REPORT, THE EUROPEAN MARKET FOR 40-MM AMMUNITION EXCEEDS 2 BILLION EUROS ANNUALY

A particularly noticeable increase in demand is evident among the armed forces of NATO member states and industrial partners in Central and Eastern Europe.

The signing of the Term Sheet represents the next step in the implementation of Proguns Group S.A.’s strategy, which focuses on developing expertise in the defense technology market. The completion of this investment will enable us to participate in the creation of an integrated medium-caliber ammunition production segment in Poland, encompassing the design, licensed production, and sale of ammunition and components.