CSG Group is a major producer of military equipment and ammunition within the Czech and Slovak defense industry, which is, among other things, supporting Ukraine’s defense efforts. Its Slovak subsidiary, the MSM Group, produces ammunition and operates facilities in Slovakia, Serbia, Spain, and soon Germany.

At the beginning of October, ZVS Holding inaugurated a new production line for 155mm artillery ammunition in Snina, eastern Slovakia. This development will enable the company to significantly increase its production capacity for 155mm large-caliber ammunition bodies to 360,000 units annually in the coming years. The investment in this production expansion amounted to EUR 31.5 million. Over the past period, a total of more than EUR 80 million has been invested in the ZVS operation in Snina.

The opening ceremony of the new line was attended by the Slovak Minister of Defense, Robert Kaliňák, and Pavol Čahoj, Chairman of the Board of ZVS Holding. “I am very pleased that the Slovak defense industry is developing dynamically. A strong domestic industry contributes not only to our security but also to European security. This is why we aim to continue working intensively to support this sector,” said Kaliňák.

On the same day, the renovation of the former Chemko Strážske site was officially launched in the eastern Slovak municipality of Strážske, again in the presence of Minister Kaliňák. MSM Group plans to begin producing bimodular powder charges for large-caliber ammunition at this site by 2027. The MSM Group intends to invest EUR 350 million to develop the new production infrastructure in several stages. These investments are expected to significantly increase employment and contribute to the economic strengthening of the entire eastern Slovak region.

Germany has been added to the map of countries where CSG Group operates. MSM Group has purchased the nitrocellulose production plant and the entire Walsrode Industrial Park in the German state of Lower Saxony from the American company International Flavors & Fragrances Inc. Processes are currently underway to finalize the transaction, which will take several more months. This acquisition is aimed at securing the capacity to produce nitrocellulose, a key component for large-caliber ammunition production. It clearly demonstrates CSG's commitment to acquiring all the necessary components for ammunition production, from input commodities and semi-finished products to the final product. Nitrocellulose production is strategically important for the security of NATO, EU countries, and their allies.

Transfer of Production to Ukraine

Another recent CSG activity in the large-caliber ammunition sector is an agreement to transfer production to Ukraine. The Group will collaborate with the Ukrainian arms manufacturer Ukrainska Bronetechnika to produce large-caliber ammunition directly in Ukraine. By 2025, 100,000 rounds of ammunition will be produced under this cooperation, with annual production exceeding 300,000 rounds by 2026.

The production of ammunition will take place in both the Czech Republic and Ukraine, aiming to increase and accelerate production for the Ukrainian army while reducing the cost of artillery shells. "We are aware of how important the production of military equipment on Ukrainian territory is for Ukraine. This initiative is based on the idea of CSG owner Michal Strnad to transfer and localize production. Unlike other companies, we have already signed a contract for its implementation," commented Richard Kuběna, Commercial Director of CSG Defence Division, on the signing of the agreement.