Finance
Czech defence group CSG forms JV with eurenco for slovak artillery propellant plant
Published by Global Banking & Finance Review®
Posted on March 4, 2026
2 min readLast updated: March 4, 2026
Quick Summary
Czech defence conglomerate CSG, via its Slovak arm ZVS Holding, will partner with France’s EURENCO to launch a €300 million artillery propellant (MACS) plant in Slovakia by 2028, aiming to ease NATO ammunition supply bottlenecks amid surging European military demand.
CSG and EURENCO Join Forces for €300M Artillery Propellant Plant in Slovakia
Strategic Partnership to Boost European Defence Industry
Joint Venture Announcement
March 4 (Reuters) - Slovak ammunition group ZVS Holding, part of fast-growing Czech defence firm CSG, will form a joint venture with France-based EURENCO to build a 300 million euro ($349 million) artillery propellant factory in Slovakia, the firms said on Wednesday.
Significance of the Deal
The deal with EURENCO, a European leader in military explosives, is part of the drive to boost Europe's defence industry capabilities.
Production Focus
The plant will manufacture Modular Artillery Charge Systems (MACS), a component of artillery ammunition used by NATO members.
CSG’s Expansion and Market Context
CSG completed the biggest defence sector stock offering on record in January as it seeks to grow and tap into a surge in military spending following Russia's 2022 invasion of Ukraine.
Ownership Structure
The Czech group, which holds 50% of ZVS while the Slovak state has the remaining share, said the availability of the charge systems that the new Slovak plant will produce was a limiting factor to increasing ammunition production in Europe.
Operational Timeline and Output
The plant should be operational in 2028, CSG said, adding planned annual output would reach several hundred thousand modular propellant charge systems.
Financial Information
($1 = 0.8599 euros)
Reporting Credits
(Reporting by Jan Lopatka. Writing by Anna Wlodarczak-Semczuk. Editing by Mark Potter)
Key Takeaways
- •The joint venture targets construction of a Modular Artillery Charge Systems (MACS) factory in Slovakia with output of several hundred thousand units annually by 2028.
- •CSG, freshly flush from raising €3.8 billion in January 2026 through the largest-ever defence-sector IPO, is expanding its production footprint to meet growing NATO ammunition needs.
- •EURENCO’s recognised expertise in energetic materials—including recently qualified 155 mm modular charges and a new Polish modular charge line—bolsters the venture’s strategic capacity and European industrial resilience.
Frequently Asked Questions about Czech defence group CSG forms JV with EURENCO for Slovak artillery propellant plant
1Who is involved in the Slovak artillery propellant plant joint venture?
Slovak ammunition group ZVS Holding, part of Czech defence firm CSG, and France-based EURENCO are partnering in the joint venture.
2What will the new plant in Slovakia produce?
The plant will manufacture Modular Artillery Charge Systems (MACS), an essential component for NATO artillery ammunition.
3How much is being invested in the Slovak propellant factory?
The investment for the artillery propellant factory is 300 million euros ($349 million).
4When will the plant be operational and what is its planned output?
The plant is expected to be operational in 2028 and will have the capacity to produce several hundred thousand modular propellant charge systems annually.
5Why is this joint venture important for Europe’s defence industry?
It boosts Europe's defence manufacturing capabilities and addresses supply limitations for modular charge systems needed in ammunition production.
