Grupa Azoty is building a gunpowder factory. A key investment for Poland

Grupa Azoty is preparing a feasibility study for investing in a nitrocellulose and multi-base powder plant in Poland. As “Puls Biznesu” emphasizes, the project is of key importance for the country’s security, although it will not improve the financial situation of the fertilizer manufacturer.

Cooperation with the arms sector

Grupa Azoty noticed the potential in the arms industry. In November 2024, the company signed a letter of intent with Polska Grupa Zbrojeniowa (PGZ), ammunition manufacturer Mesko and the Industrial Development Agency. The goal is to increase the production of explosives in Poland. Together, they are to create an entity responsible for the construction of a nitrocellulose and gunpowder factory.

According to “Puls Biznesu”, Poland currently does not produce multi-base gunpowder, which is crucial for the modern army. Currently, the country is forced to import it from abroad. “Starting its own production is a strategic task. Grupa Azoty will play a key role in it as a producer of nitrocellulose – the basic ingredient of gunpowder,” we read in the article.

Feasibility study in progress

The first step in implementing the project is the development of a feasibility study prepared by Grupa Azoty. The document is intended to constitute the basis for further activities, such as establishing the framework for cooperation, schedule and financial details. “We are at the stage of analysis and establishing the framework for future cooperation,” says Paweł Bielski, vice-president of Grupa Azoty.

The company has already started talks with potential suppliers of gunpowder production technology. Key decisions regarding investment details and the schedule of activities are to be made in the near future.

An investment for safety

The planned nitrocellulose and multi-base gunpowder factory is of strategic importance for Poland. The production of these materials on site will allow us to become independent from foreign suppliers and strengthen the domestic arms sector. Although the project will not bring direct financial benefits to Grupa Azoty, it may significantly impact the country’s security and the development of the domestic arms industry.