Poland aims to produce Barracuda missiles via PGZ-Anduril partnership, but orders are pending

Poland is positioning itself as a strategic hub for defense manufacturing with a new cooperation agreement between the Polish Group of Armaments (PGZ) and U.S. firm Anduril Industries. The deal, signed at Wojskowe Zakłady Lotnicze nr 2 (WZL-2) in Bydgoszcz, aims to develop production capabilities for low-cost cruise missiles in Poland. Prime Minister Donald Tusk called it a significant moment for Polish industry and national security, while Deputy Prime Minister Władysław Kosiniak-Kamysz noted that Poland is the first country Anduril has partnered with for such an agreement, emphasizing the development of 900 km-range missiles.

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This is an important moment for Polish industry. Confirmation that we are trying to effectively and realistically take care of Poland's security.

Under the agreement, WZL-2 and Anduril will produce thousands of SLB-500M systems, the basis for the Barracuda missile. Future stages plan to integrate more Polish and European suppliers, with the goal of creating a predominantly European-made version of the Barracuda. This initiative is seen as a breakthrough, potentially bringing new competencies to PGZ companies. Minister of State Assets Wojciech Balczun described it as a "moment absolutely groundbreaking, because we have never had this type of competence before."

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We are on the eve of the NATO summit. This is the development of long-range missile production, it's about 900 km. Poland is the first country with which Anduril is signing such an agreement. This is building Poland as a strategic location for building the defense industry.

However, the ambitious production plans face a critical hurdle: the Polish Ministry of Defense must first place an order for the missiles. While discussions are reportedly ongoing, no contract has been signed. The plan involves assembling approximately 3,000 units annually, with the setup of an assembly line expected to take over a year. It remains unclear if U.S. approval for technology transfer has been secured, which could present another challenge. Anduril itself relies heavily on subcontractors, producing only certain missile components.

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PGZ companies are getting a new breath. This is an absolutely groundbreaking moment, because we have never had this type of competence before.