Proguns Group S.A., together with the Niewiadów-PGM Group, Zakłady Sprzętu Precyzyjnego Niewiadów (ZSP), and the Forum 119 FIZ fund, is carrying out one of the most significant projects in the Polish defense industry. A modern 40 mm ammunition factory is being built in Niewiadów, with an investment budget of 67.4 mln zł. This project paves the way for Proguns Group to enter the medium-caliber ammunition production segment and strengthens the company’s position in the defense technology industry.
Proguns Group's Key Role in a Strategic Project
For Proguns Group, this is a landmark project, as the company is involved in every stage of establishing the new production facility—from infrastructure preparation, through the technology transfer process, to the implementation of operational solutions. Participation in this investment enables the company to rapidly develop the capabilities that will allow it to enter the medium-caliber ammunition market both in Poland and abroad. The collaboration with the Niewiadów-PGM Group and the opportunity to utilize ST Engineering’s licensed technology give Proguns Group access to advanced know-how that was previously unavailable in the domestic industry.
Technology Transfer from a Global Leader
The 30-year license agreement signed between ZSP Niewiadów and ST Engineering Advanced Material Engineering Pte. Ltd. provides access to state-of-the-art technology for the production of 40 mm ammunition. The documentation and know-how obtained form the foundation for the construction of the Polish factory, and Proguns Group—as an active participant in the project—can leverage this expertise for its own development projects. The involvement of such a strong technology partner—which has been in operation for over 55 years and collaborates with the armed forces of 46 countries—significantly enhances the stature and potential of the entire project.
Addressing the Market's Strategic Needs
The market for 40 mm ammunition in Europe is characterized by exceptionally high and growing demand. EU member states have more than 42,000 grenade launchers of this caliber, and ammunition stocks exceed 42 million rounds. The value of the European market is estimated at $2.3 billion, of which approximately $200 million annually is generated by training needs alone. Rising defense spending and the European Union’s drive to increase technological self-sufficiency make the launch of domestic production of 40 mm ammunition a venture with exceptional growth potential. By participating in the construction of a new factory, Proguns Group is becoming one of the entities capable of meeting this growing demand.
Statement by the CEO of Proguns Group
Proguns plays a key role in the project, drawing on the experience of the Niewiadów-PGM Group and technology transfer. As Marcin Krajewski, President of the Management Board of Proguns Group S.A., emphasizes: “Entering the medium-caliber ammunition production segment is an extremely important step toward growth for Proguns. Based on my experience gained during many years of service in the Combat Teams of the GROM Military Unit, I can confirm that 40 mm ammunition is an extremely effective weapon used in hand-held and automatic grenade launchers. Thanks to our collaboration with the Niewiadów-PGM Group, Forum 119 FIZ, and the use of licensed ST Engineering technology, we are implementing a project that aligns with Poland’s priorities regarding security and technological independence.”
New Growth Opportunities for Proguns Group
Through its participation in this investment, Proguns Group is strengthening its expertise in defense technology and manufacturing, building the operational infrastructure needed to enter the medium-caliber ammunition market, and becoming an integral part of the newly emerging industrial ecosystem in Niewiadów. The project opens up new growth opportunities for the company and allows it to solidify its position as a key partner in building Poland’s technological independence.
A Strong Partnership as the Foundation of the Project
The investment is being carried out jointly by Proguns Group S.A., Grupa Niewiadów-PGM S.A., Zakłady Sprzętu Precyzyjnego Niewiadów, the Forum 119 FIZ fund, and ST Engineering Advanced Material Engineering Pte. Ltd. The synergy of these entities’ expertise, experience, and advanced technology creates a solid foundation for the development of Poland’s medium-caliber ammunition segment. Proguns Group’s participation in this project strengthens its position as one of the key players in the domestic defense sector.