On Tuesday, June 10, 2025, Polska Grupa Militarna (PGM), together with Grupa Niewiadów (GN), signed an agreement with the FORUM 119 Closed-End Investment Fund, financed by the Fidera Group, for a joint business venture (JV Agreement). Under the agreement, a total of 250 million PLN in funding was secured (PGM and Grupa Niewiadów to secure PLN 250 million in funding for a strategic defense infrastructure project).
Images: Grupa Niewiadów
The secured funds will be used to implement a strategic project in the defense sector—the construction and launch of a modern ammunition filling facility, with a planned production capacity of 120,000 units per year, expandable to 180,000 units annually.
“The signing of the agreement is not only a negotiating success, but above all the clearest proof of our consistent efforts to strengthen national defense capabilities. Securing this financing enables us to launch a project that will expand domestic production capacity for advanced ammunition, in direct response to Poland’s real needs. This is a tangible investment in national security as well as the country’s technological and industrial development. The partnership with the Fidera fund provides us not only with stable capital backing, but also with the support of an experienced partner with strong competencies. In our view, this agreement—which allows for the Group’s continued dynamic growth—will support our plan to transfer our shares to the regulated market of the Warsaw Stock Exchange (GPW),” said Grzegorz Niedzielski, CEO of PGM and Grupa Niewiadów.
“Closing the transaction with the Fidera fund confirms the trust placed in our development vision and the direction we are taking as an organization, following the ambitious merger of the two groups. The signed agreement significantly strengthens both our financial standing and operational capabilities, creating a stable foundation for strategic projects. This enables us to move from the planning phase to execution and begin deploying modern technologies that will become a pillar of Poland’s defense capabilities in the years to come,” added Radomir Woźniak, Vice President of the Management Board at PGM.
Details Of The Agreement
The financing structure for the above-described venture, as agreed by the parties, includes the following components:
- Fidera will acquire 20 million series K shares of the Issuer in exchange for 100 million PLN;
- Fidera will provide a 30 million PLN loan to ZSP Niewiadów, with a repayment term of 24 months, to support strategic and technological development, modernization of ZSP assets, and to secure the execution of the ammunition filling line agreement;
- Fidera will make a direct investment of 120 million PLN in EG Polska in exchange for a 65% ownership stake, earmarked for the development of filling (elaboration) capabilities.
The key element for which the secured funding will be used is the construction and launch of a modern 155 mm ammunition filling line, with a planned production capacity of 120,000 units per year, expandable to 180,000 units annually. Additionally, the companies intend to apply for public subsidies, which may further accelerate and scale up the investment. It should be noted that upon the signing and execution of the JV Agreement, ZSP Niewiadów will remain 100% owned by Grupa Niewiadów, which is itself wholly owned by PGM.
The ammunition filling facility will be developed as part of a joint investment by ZSP Niewiadów and Fidera in the company EG Polska. In addition to its capital contribution, ZSP Niewiadów will also provide staffing and technical support for the venture. ZSP Niewiadów will remain entirely within Grupa Niewiadów’s ownership and will retain direct influence over the management of EG Polska and the making of key decisions.
EG Polska will remain a subsidiary within the PGM Capital Group, which has committed to allocating 55 million PLN to provide a loan to Grupa Niewiadów, designated for financing ZSP’s operational activities related to ammunition filling.
A Strong Player in Poland’s Defense Sector
The merger of Polska Grupa Militarna, listed on the NewConnect stock exchange, with Grupa Niewiadów, a recognized manufacturer of special-purpose equipment and solutions for both military and civilian sectors, has led to the formation of a new capital group with enhanced operational and technological capabilities
The integrated entity operates within the broadly defined defense sector. The Group also includes companies specializing in the development of unmanned systems (drones), dual-use products, military logistics, and advanced technologies for the armed forces. It holds an MSWiA license for the production and storage of ammunition, the trade of military goods, and is actively developing advanced solutions tailored to the needs of the modern battlefield.
One of its key assets is ZSP Niewiadów—a company with over 100 years of history in defense manufacturing and proven experience in supplying the Polish Armed Forces. The Group is currently implementing a strategic project to build a modern 155 mm ammunition factory, addressing the growing defense needs of Poland and its allies. 155 mm ammunition is a critical component of military equipment worldwide.
Thanks to its scale of operations, complementary high-level competencies, and modern technological base, the Group is forming a strong defense industry holding—one of the most comprehensive and dynamically growing private-sector players in the country. The Group’s products are delivered to both the domestic and export markets.
Growing Demand for 155 mm Ammunition
According to management estimates, based on planned armament levels, Poland’s strategic demand for 155 mm ammunition is approximately 3 million rounds.
155 mm artillery ammunition is a key component of military equipment worldwide. In Ukraine, 155 mm rounds play a crucial role in combat operations, with daily usage ranging from 3,000 to 10,000 rounds. Before the war in Ukraine, the price per round ranged between 2,000 and 3,000 USD. Due to increased demand and rising production costs, prices have surged significantly—reaching between 6,000 and well over 10,000 USD on the European market.
Since the start of Russia’s invasion of Ukraine, the combined production of 155 mm ammunition among the three largest European manufacturers has increased fivefold. It is estimated that by 2027, total output will reach more than eight times the pre-invasion production volume.
Press release