Northrop Grumman explores ammunition co-production in Poland

WARSAW (Reuters) - Northrop Grumman is exploring producing 120 millimetre tank ammunition in Poland as the U.S. ally surges defence production capacity, the company's chief told Reuters on Thursday. Countries geographically close to Russia like Poland, Finland and Germany have been exploring deals to build U.S. weapons in Europe, negotiating new deals to buy arms and looking to speed up existing contracts as the war in Ukraine reshaped thinking on the volume of munitions needed in future conflicts. "We are looking at co-production opportunities for 120," Kathy J. Warden, Northrop Grumman CEO, told Reuters.

She said that while talks were advanced the company still needed to "find the right industrial partners and the right contract structures. But all of that work is underway".

Poland has been on a buying spree as it fulfils its vow to spend 4% of its gross domestic product on defence and more than double the size of its army to deter any possible attack after Russia's invasion of Ukraine last year.

Poland agreed to purchase more than 360 tanks from the United States last year.

Northrop has identified Poland and five other countries where it wants to set up co-production facilities, Warden said. The company has not disclosed the five others.

(Reporting by Karol Badohal in Warsaw; writing by Mike Stone in Washington; Editing by Kirsten Donovan)

By Karol Badohal