The Niewiadów-PGM S.A. Group, ZSP Niewiadów Sp. z o.o., Proguns Group S.A., and Forum 119 FIZ (owned by the Fidera fund) have signed a term sheet regarding a joint investment worth PLN 67.4 million (PLN 60 million from Forum 119 FIZ, PLN 7.4 million – Niewiadów-PGM Group), aimed at launching a modern 40 mm ammunition factory in Niewiadów. The project will be implemented using technology provided by the Singaporean company ST Engineering Advanced Material Engineering Pte. Ltd. and represents a key step in developing domestic capabilities in the field of medium-caliber ammunition production.
The signed document marks a preparatory step toward technology transfer and the launch of production at the subsidiary Fabryka Amunicji Pocisk S.A., in which the Niewiadów-PGM Group will ultimately become the majority shareholder.
Under the signed agreement, the parties plan to launch a modern ammunition factory in Niewiadów, which will produce 40 mm ammunition for military use. The project, carried out in cooperation with the Singaporean company ST Engineering Advanced Material Engineering Pte. Ltd., involves the implementation of certified technology and the creation of Poland’s first production facility in this sector. The investment, valued at PLN 67.4 million, aims to increase domestic capabilities in the production of medium-caliber ammunition and to develop industrial expertise in the field of defense technologies. The majority of the amount will be provided by Forum 119 FIZ (PLN 60 million), while the remaining amount will be covered by the Niewiadów-PGM Group (PLN 7.4 million – Niewiadów’s acquisition of Proguns Group S.A. shares valued at PLN 7.4 million).
The completion of this investment will enable the Niewiadów-PGM S.A. Group to establish an integrated medium-caliber ammunition production division within the holding company, encompassing the design, licensed production, and sale of ammunition and components.
According to data from the European Defence Agency and a report by the NATO Industrial Advisory Group (2024), the European market for 40 mm ammunition is worth over €2 billion annually, with growing demand from NATO armies and industrial partners in Central and Eastern Europe.
This is another step toward realizing our vision of building an integrated, strong, and privately owned defense industry holding company in Poland. Our partnership with Proguns Group and Forum 119 FIZ allows us to combine capital, experience, and technology in a way that will enable the creation of a modern production line in Niewiadów. “We are convinced that this investment will contribute to strengthening domestic ammunition manufacturing capabilities and developing engineering and technological expertise in the Polish defense industry,” says Radomir Woźniak, Vice President of the Management Board of Grupa Niewiadów-PGM S.A.
Entering the medium-caliber ammunition production segment is an extremely important step toward growth for the Proguns Group. Based on my experience gained during many years of service in the Combat Teams of the GROM Military Unit, I can confirm with full conviction that 40 mm ammunition is an extremely effective weapon used in hand-held and automatic grenade launchers, which constitute the primary firepower, for example, on armored personnel carriers. The wide variety of this ammunition offers extensive possibilities for its use in soldier training and on the modern battlefield. Thanks to our collaboration with trusted and recognized partners, namely the Niewiadów-PGM Group and Forum 119 FIZ, as well as the use of licensed ST Engineering technology, we are implementing a project that aligns with Poland’s priorities for security and technological independence. “Our goal is to build a strong position in the rapidly growing 40 mm ammunition market, based on the highest standards of quality and technology,” adds Reserve Captain Marcin Krajewski of JW GROM, President of the Management Board of Proguns Group S.A.