Silesia Shifts from Coal to Defense Industry – A New Opportunity for Poland’s Economy

ECONOMYSilesia Shifts from Coal to Defense Industry – A New Opportunity for Poland’s Economy

Silesia is changing course from coal-based industry toward the defense sector, creating a unique opportunity for Poland’s economy. With its strong industrial base, infrastructure, and workforce, the region is in a favorable position to develop into a hub for the defense industry.

From heavy industry to defense manufacturing

Traditionally associated with heavy industry, the Silesian Voivodeship is increasingly becoming part of Poland’s defense landscape. The region is home to defense companies as well as businesses producing for both civilian and military markets. Strong sectors include the manufacture of metal products and vehicles, including armored military vehicles. Thanks to its industrial heritage, Silesia has all the components needed to build robust supply chains for the defense sector. This positions the region as a potential key location for national defense production.

Building a strong defense industry ecosystem in Silesia could drive modernization across the regional economy, provided the process is well-planned and coordinated. Such an approach would make efficient use of local resources while avoiding the excessive costs of developing similar capabilities elsewhere. In practice, this means shifting resources from one branch of heavy industry to another, linked to the ongoing energy transition that is reshaping the region’s economy.

“Only by addressing both processes simultaneously – industrial transformation and energy transition – can Silesia maintain its competitive advantages and create stable conditions for new ventures,”
said Julia Patorska, Partner and Sustainability & Climate Leader at Deloitte for Poland and Central Europe.

Challenges and advantages

Silesia faces the urgent need for economic transformation, as the gradual phasing out of coal mining requires new growth directions. By 2030, employment in mining alone will drop by 12,300 jobs, and across the entire coal sector the gap will reach 36,500 jobs. This scale of change demands strong responses from national and local authorities. Over the longer term, demographic decline is another challenge: forecasts show the region could lose over 1 million residents by 2060, a quarter of its current population. Without measures to attract young people and retain specialists, these shifts could weaken the labor market and constrain business growth.

Despite these difficulties, Silesia has unique assets. The region offers over 9,500 hectares of investment land, including both greenfield sites and post-industrial areas suitable for revitalization. Its rail infrastructure is highly developed: network density is 15.3 km per 100 km², more than double the national average, and 92% of lines are electrified. Supported by highways and Katowice Airport in Pyrzowice, this transportation network creates favorable conditions for heavy industry and logistics.

Strong economic foundations

Silesia already generates significant value in sectors critical for defense. The region’s automotive production reached PLN 73.6 billion, while metal products amounted to PLN 34 billion. Altogether, industries linked to defense (including civilian production classified under the same codes) produce PLN 113 billion in added value. These figures confirm that Silesia has solid foundations to become one of the main industrial centers in Poland and Central Europe.

Rising defense spending in Poland, the EU, and NATO provides a unique opportunity to expand the region’s potential. Access to European and national programs could bring significant financial support – provided authorities and businesses act effectively.

“Silesia combines an advanced industrial base, skilled workforce, and modern transport infrastructure, positioning it among Poland’s leading defense industry hubs. Automotive, steel, and metalworking plants can serve as a foundation for new competencies, while universities and R&D centers will enhance dual-use technologies. This way, Silesia can not only strengthen Poland’s security but also contribute to European defense projects, which will drive investment in the coming years,”
said Mariusz Ustyjańczuk, Partner and Central Europe Defense Sector Leader at Deloitte.

Next steps

To fully leverage its potential, Silesia needs a comprehensive long-term strategy for defense industry development. This strategy should set technological priorities, guide investments, and define the roles of central and local authorities, universities, research institutions, and companies. Future efforts should focus on dual-use technologies, projects that strengthen national security, and stable demand ensured by long-term public procurement and framework contracts.

Equally important will be retraining and education programs, including new academic courses, technical training, and joint research labs to prepare workers for advanced technologies. Ultimately, coordinated actions and consistent implementation will determine whether Silesia secures its position as one of Europe’s key defense industry hubs.

About the report

The Deloitte report “Silesia on the Frontline of Change: The Region’s Potential in the Defense Sector” is a comprehensive analysis of opportunities for developing the defense industry in the region. It combines data analysis with 11 in-depth interviews conducted between July 3 and August 20, 2025, with representatives of central and regional authorities, national and international defense companies, local businesses, research institutions, and entrepreneurship accelerators.

Long one of Poland’s leading industrial centers, Silesia now stands before a new wave of investments. With the energy transition, coal phase-out, and demographic challenges, the region needs a new growth path. Defense industry development offers a natural direction. Deloitte’s analysis shows that industries relevant to defense already produce PLN 113 billion, supported by infrastructure and human capital. Whether Silesia realizes this potential will depend on effective coordination between the state, local governments, businesses, and research institutions.

Source: CEO.com.pl

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