Poland shifts defence procurement toward domestic and regional production as it builds Europe's largest army

Poland's defence procurement pivot

As Poland builds what it describes as Europe's biggest army, it is shifting its defence procurement toward domestic and other Central European companies, aiming to reduce reliance on far-flung suppliers that cannot quickly ramp up deliveries, according to government officials and companies.

Polish spending on defence procurement from domestic companies, including joint ventures with other Central European firms, has risen nearly four-fold since 2022 to 30.4 billion zlotys ($8.15 billion) last year, according to Armaments Agency data.

While the Ukraine conflict has prompted higher defence spending across Europe, in Poland it is a top priority as the country shares a border with Ukraine and sees Russia as an existential threat, officials say.

"We're building the largest land army in Europe," Deputy State Assets Minister Konrad Golota said. "The fact that something is used by our army and the fact that it's manufactured in Poland is becoming increasingly important."

Rising defence spending

This year, Poland is expected to spend around €53 billion ($61.45 billion) on core defence expenditures, the fourth-highest in the EU behind France, Italy and Germany, according to NATO data, up from €44 billion in 2025 and equal to around 4.7% of gross domestic product.

The Polish Armed Forces surpassed 220,000 personnel this year, according to reports.

While big-ticket systems such as -made Patriot missile batteries, Abrams tanks and F-35 fighter jets remain important, Polish officials say expanding domestic and regional production of drones, ammunition and other frequently used equipment has become a priority.

Defence Minister and Deputy Prime Minister Władysław Kosiniak-Kamysz described the investments as a matter of supply chain independence.

Regional industrial expansion

Czech company CSG has expanded production in Poland, including a propellant technology transfer to MESKO and a deal with PGZ for drones, missiles, ammunition and armoured vehicles. In August, CSG signed contracts worth over €100 million with PGZ subsidiary Dezamet and €150 million with Huta Stalowa Wola.

Polish arms maker Grupa Niewiadomo is setting up 155mm ammunition production with Ammo France. PGZ said in March it will partner with Estonia's Frankenburg Technologies to make anti-aircraft systems in Poland.

Poland has also offered to jointly produce missiles for the Patriot air defence system with the US and Ukraine.

Deputy State Assets Minister Konrad Golota said companies have to invest and transfer technology to Poland.

Strategic rationale

Poland's strategy reflects a broader rethink across Europe as governments seek to rebuild defence industrial capacity after the war in Ukraine exposed how quickly modern conflicts can deplete ammunition and equipment. For Warsaw, maintaining domestic manufacturing capacity is seen as a way to ensure supplies can be sustained during a prolonged conflict or a disruption to international supply chains.

The trend has been described as "near-shoring" for resilience and NATO interoperability, with Rheinmetall also expanding in Poland.