Czech CSG Buys German Site, Plans €100M Investment in Ammo Production
CSG's Acquisition and Investment Plans in Germany
Overview of the Acquisition
Aug 4 (Reuters) - Czech-based ammunition and arms producer CSG has bought the Gnaschwitz industrial site in the German state of Saxony and plans to invest more than €100 million ($115 million) in its initial development phase, it said on Tuesday.
Purpose of the Site
The site is intended for the production of nitroglycerin and nitroglycerin-based products, while also developing ammunition and ammunition component manufacturing.
Strategic Importance
"The European defence industry needs not only greater ammunition production capacity, but also reliable supplies of strategic energetic materials without which ammunition cannot be manufactured," CSG Defence Systems CEO Jan Marinov said in a statement.
Key Details of the Deal
Acquisition Information
• The site was acquired from Spanish explosives maker MAXAM for an undisclosed sum.
Job Creation and Expansion
• Following the completion of planned projects, the site is expected to create up to 125 new jobs.
CSG's Expansion in Germany
• The deal marks yet another acquisition for CSG in Germany, as it expands its industrial footprint in the country.
Currency Exchange Rate
($1 = 0.8692 euros)
Reporting Credits
(Reporting by Aleksandra Kret in Gdansk, editing by Milla Nissi-Prussak)
