March 4 (Reuters) - Slovak ammunition group ZVS Holding, part of fast-growing Czech defence firm CSG, will form a joint venture with France-based EURENCO to build a 300 million euro ($349 million)
CSG and EURENCO Join Forces for €300M Artillery Propellant Plant in Slovakia
Strategic Partnership to Boost European Defence Industry
Joint Venture Announcement
March 4 (Reuters) - Slovak ammunition group ZVS Holding, part of fast-growing Czech defence firm CSG, will form a joint venture with France-based EURENCO to build a 300 million euro ($349 million) artillery propellant factory in Slovakia, the firms said on Wednesday.
Significance of the Deal
The deal with EURENCO, a European leader in military explosives, is part of the drive to boost Europe's defence industry capabilities.
Production Focus
The plant will manufacture Modular Artillery Charge Systems (MACS), a component of artillery ammunition used by NATO members.
CSG’s Expansion and Market Context
CSG completed the biggest defence sector stock offering on record in January as it seeks to grow and tap into a surge in military spending following Russia's 2022 invasion of Ukraine.
Ownership Structure
The Czech group, which holds 50% of ZVS while the Slovak state has the remaining share, said the availability of the charge systems that the new Slovak plant will produce was a limiting factor to increasing ammunition production in Europe.
Operational Timeline and Output
The plant should be operational in 2028, CSG said, adding planned annual output would reach several hundred thousand modular propellant charge systems.
Financial Information
($1 = 0.8599 euros)
Reporting Credits
(Reporting by Jan Lopatka. Writing by Anna Wlodarczak-Semczuk. Editing by Mark Potter)
