Niewiadów Polska Grupa Militarna: Building Europe’s Next 40 mm Ammunition Hub and a New Pillar of NATO Security

As Europe faces its most serious security challenges in decades, the Polish defence industry is entering a new phase of rapid expansion, industrial consolidation, and strategic modernisation. At the centre of this transformation stands Niewiadów Polska Grupa Militarna (NPGM) — an integrated defence holding combining more than a century of industrial heritage with modern defence technologies to strengthen Poland’s defence sovereignty and reinforce NATO’s security of supply across the Alliance’s eastern flank.

NPGM’s ambition is clear: to become one of Central Europe’s leading private defence manufacturing groups through strategic partnerships with global industry leaders and the development of advanced ammunition production capabilities fully aligned with NATO standards.

At a time when European armed forces are rapidly rebuilding ammunition stockpiles and expanding domestic industrial capacity after decades of underinvestment, NPGM’s 40 mm ammunition programme directly addresses one of the most urgent capability gaps in the European defence market — secure access to NATO- standard grenade launcher ammunition manufactured within Europe.

40 mm Ammunition: Singaporean Technology, Manufactured in Poland

One of NPGM’s flagship strategic initiatives is the development of a new 40 mm ammunition production capability in Niewiadów. The project will be implemented through a dedicated special-purpose company within the NPGM Group, supported operationally and technically by Zakłady Sprzętu Precyzyjnego Niewiadów (ZSP Niewiadów). This structure is intended to combine focused project execution with the Group’s existing industrial base, licenses, infrastructure, and quality systems. The initiative represents Poland’s first full-scale 40 mm ammunition production programme developed through technology transfer from a global defence industry leader. The cornerstone of the project is a strategic partnership with Singapore- based ST Engineering Advanced Material Engineering Pte. Ltd. Under the agreement, NPGM secured a 30-year exclusive production license covering Poland and 20 European Union countries, making the Group the only authorised manufacturer of this ammunition family within the licensed territory and positioning NPGM as one of Europe’s emerging 40 mm ammunition production hubs.

The cooperation includes full technology transfer (ToT), personnel training, and implementation of military-grade quality assurance procedures fully compliant with NATO requirements. From the outset, the project has been designed to ensure full interoperability with weapon systems used across NATO armed forces and future procurement programs conducted by European governments and institutions such as the NATO Support and Procurement Agency (NSPA).

Building Europe’s Next 40 mm Ammunition Hub

The programme includes the development and production of a complete family of grenade launcher ammunition covering operational, training, and specialised applications. Manufacturing will focus on two core NATO-standard calibres:

• 40×53 mm HV (High Velocity) — designed for automatic grenade launchers,
• 40×46 mm LV (Low Velocity) — intended for handheld and individual grenade launchers.

The portfolio is expected to cover operational, training, and specialised applications across both calibres, with the final configuration aligned with NATO customer requirements and the licensed technology package. In parallel, the Group plans to expand the programme toward selected 40×46 mm LV non-lethal ammunition solutions intended for law enforcement and security applications.

The new production facility has been designed to address substantial market demand estimated at approximately 40 million rounds across European NATO member states. Target annual production capacity is expected to reach up to 480,000 rounds per year. Thanks to Poland’s strategic location and the rapidly expanding industrial and logistics infrastructure in Niewiadów, the facility is expected to serve as a regional supply hub for 40 mm ammunition supporting NATO and allied customers throughout Central and Eastern Europe.

The investment programme — fully financed with secured funding exceeding PLN 70 million (€16.5 million) — is progressing according to schedule. Construction of production halls and storage infrastructure is expected to be completed by April 2027, with serial production scheduled to begin in mid-2027.

The long-term objective is to localise the majority of component manufacturing in Poland. While approximately 75% of components will initially be supplied by the Singaporean partner, NPGM aims to achieve up to 85% local production content in the future, significantly strengthening European supply resilience and reducing dependence on external supply chains.

The project has also been designed with future scalability in mind, allowing for further expansion of production capacity, integration of additional ammunition variants, and development of next-generation solutions, including programmable and non-lethal ammunition systems.

ZSP Niewiadów: From Border Security Systems to 155 mm Ammunition

Zakłady Sprzętu Precyzyjnego Niewiadów (ZSP), the operational foundation of NPGM, continues the industrial legacy of the historic “Nitrat” Polish Chemical Works established in 1920. The company operates an extensive industrial complex covering approximately 100 hectares of production and storage infrastructure, including its own private testing range.

ZSP is an established supplier to the Polish Armed Forces and executes contracts for the Polish Armament Agency. Its product portfolio includes smoke grenades, signalling mines, demining systems, artillery firing simulators, and other military products. The company holds all critical licenses and certifications, including AQAP and ISO standards required for interoperability with NATO armed forces.

One of ZSP’s most important strategic initiatives is the planned resumption of large-scale anti-personnel mine production following Poland’s formal withdrawal from the Ottawa Convention in February 2026. The project is considered strategically important for the “Eastern Shield” border defence initiative. Production infrastructure and technical documentation have already been prepared, with serial production expected to begin in Q3 2026 and annual manufacturing capacity reaching up to one million units.

At the same time, ZSP is implementing a strategic investment project involving the construction of a large-calibre 155 mm ammunition manufacturing facility, for which financing of more than PLN 250 million (€58 million) has been secured. The project aims to ensure Poland’s independent supply of NATO-standard ammunition for Krab and K9A1 self-propelled howitzers. Serial production is expected to commence in the fourth quarter of 2026, with annual output projected to reach approximately 180,000 rounds. The facility is being developed in cooperation with a number of technology partners, including Northrop Grumman and KNDS France.

An additional strategic advantage of ZSP is its expanding R&D centre and private ballistic testing range capable of testing weapon systems up to 155 mm calibre. Equipped with two firing lanes and advanced measurement infrastructure, the facility provides testing capabilities both for Group companies and external industrial partners.

Capital Markets, GPW Listing and Fidera Financing

NPGM is a publicly listed company on the Warsaw Stock Exchange (GPW), which provides the Group with institutional credibility, transparency standards, and access to capital markets required for long-term industrial expansion in the defence sector.

The Company’s presence on the GPW Main Market positions NPGM among a limited group of publicly traded European defence manufacturers operating in a sector of rapidly growing strategic importance for NATO and the European Union.

An important element supporting the Group’s expansion strategy is its cooperation with the Fidera Group and affiliated investment vehicles. The partnership provides additional long-term growth capital dedicated to the development of ammunition production capacity, industrial infrastructure, and special-purpose manufacturing projects within the NPGM ecosystem.

Together, the GPW platform and private investment financing create a scalable industrial-growth model capable of supporting large defence manufacturing programs for Poland, NATO, and allied customers.

NPGM Strategy: Industrial Growth Supporting NATO Security

Within the Group structure, Niewiadów Polska Grupa Militarna acts as a strategic integrator bringing together previously dispersed industrial competencies into a unified defence manufacturing ecosystem. Beyond managing special-purpose subsidiaries, the Group’s long-term strategy is focused on strengthening Poland’s and NATO’s industrial defence capabilities.

Through consolidation of industrial infrastructure, engineering expertise, and strategic licensing agreements, NPGM is building an end-to-end manufacturing structure capable of supporting complex defence procurement programmes. The Group combines the capabilities of Polish research institutions — including WITU, WITI, ITWL and the Military University of Technology (WAT) — with the experience of leading global defence companies.

As a result, Niewiadów is steadily becoming a recognizable industrial brand within international defence markets, building longterm credibility among NATO allies and institutions such as NSPA.

Ultimately, Niewiadów Polska Grupa Militarna represents a project of major strategic importance for Poland and the broader European defence industry. Through consistent industrial investment, international partnerships, and the utilisation of more than a century of manufacturing expertise, the Group is not only helping rebuild Poland’s defence industrial base, but also creating a modern production platform capable of supporting NATO security requirements for decades to come.