Increasing the capacity of the European industry to produce artillery ammunition is the main goal of the EU program Act in Support of Ammunition Production (ASAP). European Commission has just awarded grants in the amount of approximately EUR 500 million (over PLN 2 billion), which are divided into five areas, which are to be increased, among others: production of bodies or explosives. This is co-financing, which means that arms companies will invest even more in these projects. “With ASAP's support, it is expected to By the end of 2025, Europe will achieve an annual production capacity of 2 million rounds of ammunition. write EU officials. Currently, this potential is estimated at less than a million pieces per year.
31 projects
This program was created in response to Russian invasion of Ukraine, after it turned out that far too few 155 mm artillery shells are produced in Europe, which are used by, among others, Polish gun howitzers Crab or Korean K9.
Yesterday, a list of 31 projects that will be co-financed was announced. The tycoon's various companies will definitely win the largest pot Rheinmetall (Hungarian, Spanish or German), which will receive over EUR 100 million. Considering that they are just expanding their plants on Hungary or in Germany this is no surprise. Norway will receive almost EUR 70 million in funding Chemring Nobel S.A., as well as various entities related to Finland-Norway Nammo. It is the leader of the European defense industry.
And only one from Poland
Against this background, bets from Poland fare very poorly. The only grant was won by one of the members Polish Armaments Group Dezamet. Its value is EUR 2.1 million. This means that less than 0.5% will flow to the Polish arms industry. of 500 million allocated by the EC. – We are still negotiating with the Commission and we should receive more funds in subsequent tranches of financing – says a person associated with PGZ. However, ASAP funds for 2023-25 have just been allocated, so unless the budget is increased, we will not receive anything from this program.
But we have the NRA…
However, Poland adopted the program in a resolution of the March government last year National Ammunition Reservethe aim of which is “to expand and diversify the national production base of multi-caliber ammunition and supplement its reserves, adequate to the increased needs related to the expansion of the potential of the Polish Armed Forces“. And actually at the end of December Armament Agency signed a contract worth over PLN 10 billion for the supply of 155 mm ammunition in 2024-29 with a consortium PGZ Ammunition. However, it is not known to what extent this project will increase our capacity to produce missiles in the country, and to what extent it will simply be the supply of ammunition purchased on the market.
The second pillar of the National Ammunition Reserve program is to be the company Polish Ammunitionin which shares are held by, among others, WB Group, the second largest entity on the Polish arms market, next to PGZ. For now, however, talks between the Armament Agency and this company are still ongoing, and the offer should be submitted in the coming weeks.
However, it is known that the Armament Agency has already concluded contracts with suppliers, including: With South Korea and most likely Turkeythanks to this, the supply of 155 mm ammunition in Polish Army are expected to increase rapidly.
