Slovak company ZVS, part of CSG, agreed with European company EURENCO on building a new joint plant for producing modular propellant charges for artillery ammunition. It should become operational by 2028.
According to the MSM Group announcement, which is a ZVS co-owner, the total project investment will reach €300 million. Annual production volumes are expected to amount to several hundred thousand per year.
Read more: U.S. Set to Award Drone Dominance Contracts With Two Ukrainian Firms Competing Against Major Players Like Kratos
The new plant will be located in eastern Slovakia at Chemko Strážske facility. Restoration of the latter reportedly began in 2024 to increase shell production.
MSM Group is engaged in artillery ammunition production. At the same time, EURENCO has competence in manufacturing energetic materials, including a wide range of explosives.
The joint plant will be aimed at increasing artillery round production overall. Due to explosive substance shortages globally, this has become quite a painful issue, so the appearance of additional supply chains is greatly needed.
It is also important to note here that MSM Group and accordingly ZVS are part of the Czechoslovak Group (CSG). Ukrainian Armored Vehicles has agreements with the latter regarding shell production in Ukraine, so the new facility may also strengthen this direction.
Currently, the leader in artillery ammunition production in Europe is the Rheinmetall concern, which is actively building corresponding plants throughout the region. For example, a large facility has already been opened in Germany, with propellant production also planned in Bulgaria.
Artillery remains one of the extremely important assets on the battlefield and in the arsenal of Ukraine's Defense Forces. Therefore, having a sufficient supply of shell quantities for operation is very important
Read more: Military Official Reveals Ukraine Is Developing New Missile Weapons
