The Niewiadów Polska Grupa Militarna S.A. Capital Group is taking the next step in its previously announced project to launch the production of 40 mm ammunition in Poland. The project is being carried out in cooperation with Proguns Group S.A., Zakłady Sprzętu Precyzyjnego Niewiadów sp. z o.o., and Fabryka Amunicji Pocisk S.A., and is part of a consistently implemented strategy to develop domestic industrial capabilities in the field of defense technologies.
On January 16, 2026, Niewiadów Polska Grupa Militarna S.A. entered into an investment agreement with Forum 119 Closed-End Investment Fund, setting out the key terms of a planned investment worth up to PLN 60 million, aimed at financing the launch of a factory in Poland producing 40 mm medium-caliber ammunition. The investment will be carried out using funds provided by the Investor, in accordance with the terms set forth in the agreement.
The project is based on a license agreement for the transfer of 40 mm ammunition production technology from ST Engineering Advanced Material Engineering, based in Singapore, the conclusion of which the Company previously announced in a current report in November 2025. The license agreement provides the technological foundation for the investment and enables the launch and development of production based on the transferred technical data and know-how.
“The signing of the investment agreement marks another step, in accordance with the approved Term Sheet, toward launching 40 mm ammunition production in Niewiadów. The project has a clearly defined structure, technological infrastructure, and financing, which allows for its further, phased implementation,”said Marcin Krajewski, President of the Management Board of Proguns Group S.A.
As planned, the project will be carried out by companies belonging to the Niewiadów Polska Grupa Militarna Capital Group, with Fabryka Amunicji Pocisk S.A. serving as the operating entity responsible for launching production. The investment agreement also provides for measures aimed at consolidating the key assets and rights necessary for the implementation of the project within a single entity.
“For the Niewiadów Capital Group, Polska Grupa Militarna represents the next phase of a consistently implemented strategy to expand production capacity in the defense industry. The construction of the 40 mm ammunition factory is part of a long-term plan to build stable and modern industrial capabilities in Poland. The financing structure includes both equity investments in project companies and debt instruments earmarked directly for the launch of production. The project itself is being implemented while Niewiadów Polska Grupa Militarnia retains ownership control over key operating companies. It is worth noting that the agreement was concluded on market terms typical for this type of industrial project,” emphasized Radomir Woźniak, Member of the Management Board of Niewiadów Polska Grupa Militarnia S.A.
The construction of the factory and the launch of 40 mm ammunition production are of significant importance for the further development of the Niewiadów Polska Grupa Militarna Capital Group, thereby providing tangible support for the country’s medium-caliber ammunition production capabilities.
The 40 mm ammunition market in Europe – scale and outlook
According to available market estimates, NATO member states in Europe possess approximately 42,000 40×46 mm (LV) grenade launchers, and their total ammunition stockpiles for these systems amount to approximately 42 million rounds.
The total value of the European market for 40 mm ammunition is estimated at over €2 billion, with annual demand driven by training requirements generating a market worth approximately €185–190 million per year.
This segment is characterized by stable and predictable demand, driven by intensive military training, the need to regularly replenish ammunition stocks, and the limited shelf life of ammunition.
The rapid increase in defense spending in Europe, the ongoing technical modernization of NATO member states’ armed forces, and European Union efforts aimed at shortening supply chains and reducing dependence on non-European suppliers mean that local production of 40 mm ammunition is currently viewed as one of the most promising segments of the European defense industry.
