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PGZ, Estonia's Frankenburg to build anti-drone defence plant in Poland

Published by Global Banking & Finance Review

Posted on March 27, 2026

2 min read

· Last updated: April 1, 2026

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PGZ, Estonia's Frankenburg to build anti-drone defence plant in Poland
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WARSAW, March 27 (Reuters) - Poland's state-owned defence company PGZ will partner with Estonia's Frankenburg Technologies to manufacture ultra‑short‑range air defence systems in Poland, PGZ said on

PGZ, Frankenburg Launch Polish Plant for Anti-Drone Defence Systems

PGZ and Frankenburg Technologies Partner to Boost European Anti-Drone Capabilities

WARSAW, March 27 (Reuters) - Poland's state-owned defence company PGZ will partner with Estonia's Frankenburg Technologies to manufacture ultra‑short‑range air defence systems in Poland, PGZ said on Friday, as part of efforts to expand Europe's capabilities against drones.

Plant Construction and Production Capacity

The companies will build a plant with an annual capacity to produce up to 10,000 MARK I missiles that they are developing to counter unmanned aerial vehicles. 

Strategic Importance of the Project

"This is a significant development because, given the ongoing conflict in the Middle East and in Ukraine, Poland will have the capability to produce low-cost missiles capable of countering slow-flying drones," PGZ board member Marcin Idzik told a news conference. 

Next-Generation Defence Systems

The agreement also sets out a framework for developing the next‑generation MARK II interceptor, which is expected to extend MARK I's effective range to 5-8 km (3-5 miles). 

Industry Perspectives and Future Outlook

Frankenburg Technologies' CEO Kusti Salm said that the defence sector must operate on an industrial scale if it is to counter "the Russian threat in this part of the world, which every one of you feels every day." 

Undisclosed Details

The companies did not disclose the planned investment, specific plant location or expected production start date. 

Reporting and Editing Credits

(Reporting by Barbara Erling, editing by Andrei Khalip)

Key Takeaways

  • Partnership addresses mass drone threats by scaling production of low‑cost, short‑range Mark I missiles in Poland (≈10,000/year) (frankenburg.tech)
  • Mark I is compact (~60‑66 cm), solid‑fuel, electro‑optical‑guided ‘pocket missile’ effective to ~2 km altitude and range, tested successfully against Shahed drones (edrmagazine.eu)
  • Agreement includes framework for next‑generation Mark II with 5‑8 km range; strengthens NATO’s eastern flank, part of broader Polish anti‑drone efforts (e.g. multi‑layer ‘San’ system) (yahoo.com)

References

Frequently Asked Questions

What is the purpose of the new plant being built by PGZ and Frankenburg Technologies?
The plant will manufacture ultra-short-range air defence systems to counter unmanned aerial vehicles (drones).
How many MARK I missiles will the new plant be able to produce annually?
The plant will have an annual production capacity of up to 10,000 MARK I missiles.
What advancements are planned for the next generation interceptor?
The MARK II interceptor is expected to extend the effective range of MARK I missiles to 5-8 km (3-5 miles).
Why is this development significant for Poland and Europe?
The plant boosts Europe's capability to produce low-cost missiles for countering drone threats amid current regional conflicts.

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