German arms giant Rheinmetall wants to build a new artillery shell factory in Poland.

Rheinmetall, through its company Rheinmetall Polska, submitted a letter to the Ministry of National Defence regarding plans to build a new MCS (modular propellant charge) plant for 155mm artillery ammunition.

As reported by Business Insider Poland, a memorandum of understanding on this matter between the German company and the Polish side may be signed in the coming weeks.

At the initial stage, the location being considered for the investment is northern Poland. The German factory, as described by BI, would be part of the Green Industrial District “Kashubia” project.

In 2025, a government initiative coordinated by the Ministry of National Defence aimed at creating a new area of concentration of industry, energy and infrastructure in Pomerania. It covers primarily the Pomeranian, West Pomeranian and Kuyavian-Pomeranian Voivodeships.

The website indicates that access to 155mm artillery shells is a top priority for the Polish army. Last year, the government decided to build domestic production in this area, and companies from the PGZ group received PLN 2.4 billion from the Capital Investment Fund for the construction of artillery ammunition factories.

Without money from SAFE

At the same time, the Polish Armaments Group recently signed an agreement with its French partner Eurenco to create a joint venture to produce MCS. In parallel, the German proposal involves the construction of a plant capable of producing at least 600,000 shells per year. The estimated value of the first stage of the project is PLN 250-500 million.

“The German side declares its readiness for a joint Polish-German launch of the plant, extensive involvement of Polish subcontractors, employment of Polish employees and transfer of the necessary know-how,” Maciej Samsonowicz, advisor to the Minister of Defence and coordinator of the working group for the “Kashubia” project, told Business Insider Poland.

According to the website’s sources, talks are also underway with the Industrial Development Agency and the Ministry of State Assets. Poland is expected to involve the domestic financial sector on a commercial basis, but without financing Rheinmetall’s investment from the SAFE program.