Major Czech arms manufacturer CSG looking to open plants in Ukraine

The Czech arms company CSG (Czechoslovak Group) is going to invest hundreds of millions of euros in the production of ammunition in Ukraine, its owner Michal Strnad told Reuters.

CSG is negotiating with the state holding Ukrainian Defense Industry (ex-Ukroboronprom) on the creation of a joint venture and is looking for sites for the production of artillery and tank shells, as well as heavy equipment.

"We have two or three projects under discussion for JVs. The agreement will probably be done this year, but then two to three years (before production). If we have an agreement, we would transfer the technology for different calibres and different equipment," said Strnad.

The Czechoslovak Group has become an important supplier to Ukraine since the start of the full-scale Russian invasion. The holding has increased production of large-caliber ammunition at its plants in Slovakia, Spain and Serbia, but the scope for further expansion there is limited. Czechoslovak Group also repairs Ukrainian T-72 tanks.

Strnad said that since the beginning of the full-scale war, his company has sent about 150-160 units of heavy equipment to Ukraine. "It will be more now because we managed to find another source, so are currently buying additional pieces that we will refurbish for them," the businessman stated.

In addition, the Czech holding was called one of the potential partners of the largest private arms company of Ukraine Ukrainian Armor LLC in the production of ASCOD infantry fighting vehicles.

Czechoslovak Group was founded by entrepreneur Jaroslav Strnad, who traded in scrap metal in the 1990s. Previously, the company was called Excalibur group. In 2018, Jaroslav Strnad handed over the management of CSG to his son Michal. In 2022, the company's revenues amid the Russo-Ukrainian war reached $1.1 billion.

At the end of February, it became known that Ukroboronprom will start producing CZ BREN 2 assault rifles under a Czech license.

German corporation Rheinmetall will build a plant for the production of 155 mm shells in Ukraine.