Poland's Defense Industry Favors British Partnerships Over German Deals

Poland's defense industry is increasingly looking to the United Kingdom for collaboration, with a recent letter of intent between Nitro-Chem S.A. and global conglomerate BAE Systems marking a significant step. This project represents the first of its kind within the Polish Armaments Group (PGZ) where a Polish company will jointly design industrial defense competencies abroad with a foreign partner. It is also a direct outcome of the Security and Defense Partnership Treaty signed by the prime ministers of Poland and Great Britain in May, which outlines cooperation in military, defense industry, and cybersecurity.

At its core, the agreement with BAE Systems could lead to the construction of a TNT factory in the UK, leveraging the technologies possessed by Poland's Nitro-Chem. While the specifics are still uncertain – whether it will be a joint venture or if BAE Systems will acquire a license from PGZ – the realization of this project would be unprecedented in the recent history of Poland's defense sector. This potential collaboration underscores the growing strategic alignment between Poland and the UK in defense.

This is not the only instance of Polish-British defense cooperation. BAE Systems is already a key partner for PGZ in developing capabilities for 155mm ammunition production, with Poland having acquired a license from the British firm. This partnership aims to boost Poland's production capacity to at least 150,000 shells annually by 2028. The cooperation extends to air defense, where PGZ companies, in collaboration with MBDA, are set to produce CAMM family missiles capable of engaging targets up to 40 km away. Furthermore, in the maritime domain, PGZ Naval Shipyard is working with Babcock on the construction of three frigates under the Miecznik program, with the first, ORP Wicher, scheduled for launch in August.

These examples highlight the UK as Poland's most crucial partner in the defense industry. Meanwhile, cooperation with German firms appears less promising. German company Rheinmetall recently announced plans to expand its plant in Aschau, Bavaria, increasing its production capacity for propellant and artillery charges. This expansion, set to be completed by 2028, contrasts with a recent declaration from Rheinmetall to the Polish Ministry of Defense expressing interest in building a production facility in Poland.

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Letter of intent between Nitro-Chem S.A. and global conglomerate BAE Systems is the first project of its kind in the history of the Polish Armaments Group, where a Polish company jointly designs industrial defense competencies with a foreign partner outside the Republic of Poland. It is also a result of the Treaty on Security and Defense Partnership signed by the prime ministers of Poland and Great Britain in May. The treaty provides for cooperation in the military, defense industry, and cybersecurity.