On Monday, August 17, 2026, Niewiadów Polska Grupa Militarna (NPGM) signed an agreement that will provide it with access to significant domestic capabilities in the production of castings, components, and subassemblies. The cooperation strengthens NPGM’s position as a domestic integrator, covering the entire process from foundry production to finished products for the defense sector.
Photo: NPGM
NPGM is consistently developing a model based on combining the capabilities of Group companies with the potential of Poland’s domestic industry. The agreement provides a basis for expanding production capacity, strengthening security of supply, and increasing the share of Polish companies and components in the defense-sector value chain, or so-called local content.
The agreement was concluded by NPGM with Polska Grupa Hutnicza (PGH), Grupa Virtus, Andoria, Huta Małapanew, and the current owners of the steelworks: Supra Investments and Jan Szlązak. Its core element is the planned incorporation of Andoria and Huta Małapanew into the PGH capital group and the development of their production capabilities, particularly in the field of steel and iron castings for the defense industry.
The roles of the partners are complementary. PGH is to consolidate metallurgical and foundry assets, while NPGM is to make a capital investment in PGH, act as a strategic customer, and use its own integration capabilities to incorporate the resulting products into its manufacturing processes. Grupa Virtus is also to invest in PGH and support the project in securing business partners, customers, orders and contracts, as well as organizing development financing.
The planned cooperation includes, among other areas, the production of steel or iron castings, with particular emphasis on castings for the defense industry, including 250 kg NATO-standard bomb bodies equivalent to Mk 82 bombs, missile bodies, and cast components for 155 mm ammunition. For NPGM, this means the ability to operate across successive stages of the value chain—from domestic castings, through product integration, to finished products for the end customer.
Capabilities built over generations
Andoria continues industrial traditions dating back to 1945, while Huta Małapanew, operating since 1754, is the oldest steelworks in Poland. Both facilities bring decades of experience in metallurgy, foundry operations, and machining. Their history also includes production related to military applications.
“Our objective is to increase the share of domestic industry across the entire value chain and build the highest possible level of local content in production for the defense sector. Developing domestic foundry capabilities allows a greater share of added value to remain in Poland, strengthens security of supply and the capabilities of Polish industry, while at the same time reducing dependence on foreign suppliers,” said Adam Januszko, President of the Management Board of Niewiadów Polska Grupa Militarna.
These capabilities are particularly important at a time when Europe is increasing defense investment and rebuilding production capacity, especially in ammunition and missile systems. Foundry infrastructure, technology, and an experienced workforce cannot be created quickly—rebuilding such potential would require years and substantial investment. Preserving and developing it strengthens security of supply and Poland’s domestic defense-industrial base.
“This is the first step in building a capital structure intended to enable the consolidation of Andoria and Huta Małapanew and the further development of their production capabilities. The involvement of partners such as Grupa Virtus and Niewiadów Polska Grupa Militarna demonstrates the potential for consolidating Polish metallurgical and foundry assets, including for the needs of the defense industry,” said Radomir Woźniak, President of the Management Board of Polska Grupa Hutnicza and Vice President of Niewiadów Polska Grupa Militarna.
The industrial dimension of the project is complemented by business and financial support from Grupa Virtus.
“Our involvement includes not only capital, but also securing business partners, customers, orders and contracts for PGH and the companies in its target group. We will also support the organization of development financing, including working-capital financing, receivables factoring, contract guarantees, and bridge financing backed by secured orders. We want to leverage the industrial potential of Andoria and Huta Małapanew and create conditions for increasing their participation in domestic and international supply chains,” said Roman Rafał Rachalewski, President of the Management Board of Grupa Virtus.
Capital investment and influence on PGH’s development
As part of the transaction, NPGM will subscribe for 2.8 million PGH shares for a total of 7 million PLN. Following the planned consolidation, PGH is to acquire 100% of the shares in Andoria and Huta Małapanew, while NPGM’s stake in PGH is expected to amount to approximately 5.8%, assuming completion of all stages of the transaction. The capital investment, together with NPGM’s planned right to appoint and dismiss one member of PGH’s Supervisory Board, is intended to allow the Group to participate in the development of the production base and align it with its own requirements and integration capabilities.
Niewiadów Polska Grupa Militarna zainwestuje 7 mln zł w Polską Grupę Hutniczą S.A., wzmacniając rozwój krajowych zdolności produkcyjnych dla sektora obronnego.
Celem współpracy jest zwiększenie udziału polskiego przemysłu w łańcuchu wartości, od etapu odlewniczego, przez…
— Niewiadów Polska Grupa Militarna (@grupaniewiadow) August 17, 2026