CSG to produce large-calibre ammunition in Greek joint venture

Athens/Prague, Jan 30 (CTK) - Arms group CSG of businessman Michal Strnad has signed documents in Athens to establish the Hellenic Ammunition joint venture in Lavrio, Greece, which will produce large-calibre ammunition, and plans to invest gradually up to EUR50m (CZK1.2bn) in it, CSG told CTK today.

The project also includes the resumption of production of the explosive trinitrotoluene (TNT). Hundreds of jobs are being created, CSG said.

CSG signed the founding documents through its subsidiary MSM Greece, while the representative of the state-owned company Hellenic Defence Systems S.A. signed them on behalf of Greece.

The resumption of large-calibre ammunition production in Lavrio, southeast of Athens, is a strategic step for both the Greek defence industry and European security, said Hellenic Defence Systems CEO Christoforos Boutsikakis.

"The joint venture with CSG brings investment, modern technologies and know-how that will enable sustainable long-term development of capacities and the creation of hundreds of jobs," Boutsikakis added.

Based on the signed documents, MSM will gain managerial control over the production facility in Lavrio for 25 years, which will enable it to carry out an extensive investment and modernisation program.

Large-calibre ammunition will be produced in multiple shifts this year. Currently, approximately 120 employees work in Lavrio, and by the end of the year, the plant should employ up to 300 people.

The resumption of TNT production in Lavrio is planned for the turn of 2026 and 2027. "The TNT project in Lavrio is technologically complex and has been expanded in scope: beyond nitration itself, it now also includes the production of key intermediate products," CSG said.

CSG spokesperson Andrej Cirtek said earlier CSG would invest an additional EUR30m from the EU's ASAP program to support ammunition production capacity in the EU into the joint venture with Hellenic Defence Systems.

CSG (Czechoslovak Group) is one of Europe's leading manufacturers of artillery ammunition. It expanded in this sector even before Russia's invasion of Ukraine in 2022. CSG also manufactures smaller-calibre ammunition, ground systems at Excalibur Army, and vehicles at Tatra Trucks.

In addition to the Czech Republic, the company operates production plants in the USA, the UK, Spain, Italy, Germany, Slovakia, Serbia, and India, employing more than 14,000 people.

CSG shares began trading on the Amsterdam and Prague stock exchanges a week ago, with CSG raising EUR3.8bn from the sale of shares, representing 15.2 percent of its share capital. According to data from the Stockholm International Peace Research Institute (SIPRI), CSG is the fastest-growing European company in the global arms market in terms of annual revenue growth.

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