Ukrainian Armor start production of shells under license from Czechoslovak Group

Ukrainian Armor LLC has launched mass production of tank and artillery shells under a license from the Czech defense holding Czechoslovak Group (CSG), according to a CSG press release cited by LIGA.net.

The Ukrainian company will produce 105mm, 120mm, and 155mm caliber ammunition.

During the first year, production is expected to reach 100,000 units of 155mm and 50,000 units of 105mm shells, with capacity potentially doubling later.

"For Ukraine, 150,000 large-caliber shells represent almost a month’s consumption at the front. Moreover, this project means diversifying supply sources and strengthening independence," said Jiri Hynek, President of the Czech Defense Industry Association.

Local production will initially account for 50%, with potential to reach 80%.

CSG and Ukrainian Armor initially planned to establish a joint venture, but the idea was abandoned due to bureaucratic obstacles.

"When analyzing the legal framework for establishing a potential joint venture, we encountered complex Ukrainian regulations and compatibility issues with Czech law. Transferring the license proved to be a much simpler and faster solution," explained CSG spokesman Andriy Čírtek.

Instead, the companies agreed that CSG would grant a production license and supply key components — such as propellant charges and detonators.

CSG will not participate in pricing or client selection; all strategic decisions will be made by the Ukrainian partner. The Czech group will benefit through license fees and component sales.

• Founded in the 1990s and formerly known as Excalibur Group, Czechoslovak Group generated $1.1 billion in revenue in 2022, driven by demand amid the Russian–Ukrainian war. By 2024, CSG had tripled its profits, expanding supplies to Ukraine and NATO countries. Since the start of Russia’s full-scale invasion in February 2022, the company’s sales have risen by over 600%.