Ukraine and Czechoslovak Group agree on ammunition production partnership

 03. 10. 2024      Category: Defense & Security

In a significant development for Ukraine's defense industry, Ukrainian company Ukrajinska Bronetechnika has signed a collaboration agreement with the Czech defense holding Czechoslovak Group (CSG), which includes plans to manufacture 155mm artillery ammunition. 

Picture: Ukraine and Czechoslovak Group agree on ammunition production partnership | CSG
Picture: Ukraine and Czechoslovak Group agree on ammunition production partnership | CSG

CSG spokesperson Andrej Čírtek had previously stated in March that CSG, with the support of the Czech Ministry of Defense, was in discussions with Ukrainian state companies about transferring parts of its production capacity to Ukraine through joint ventures. The planned production would include ammunition and heavy ground equipment, with operations expected to start within three years. The scale of investment is projected to be in the hundreds of millions of euros.

The agreements surrounding the supply of components and licensed production, which involve the transfer of technologies and documentation for the manufacturing of artillery ammunition, were signed during the second International Defense Industry Forum (DFNC2) in Kyiv. The partnership, according to Militarnyj, is part of a broader strategy to enhance Ukraine's military production capabilities amid the ongoing war with Russia.

Production and Goals

Vladyslav Belbas, head of Ukrajinska Bronetechnika, confirmed the ambitious production targets in his statement to Militarnyj. "Next year, we plan to produce and deliver around 100,000 rounds, and by 2026, this number is expected to exceed 300,000. Preparations have already begun," he said. The production will be split between Ukraine and the Czech Republic, enabling both countries to increase their ammunition output and reduce costs.

The collaboration will focus on the production of standard 155mm artillery shells, including shells with ranges of 37 and 43 kilometers. In addition to this, there are plans to manufacture other types of artillery ammunition, as well as NATO-standard tank ammunition. This marks a significant expansion of Ukraine’s military manufacturing capabilities, which are being reinforced to meet the demands of the ongoing conflict with Russia.

Strategic Collaboration

This partnership aligns with earlier statements by Michal Strnad, CEO of CSG, who revealed in April that the company was considering joint production with a Ukrainian counterpart. The recent signing of agreements demonstrates the realization of this strategic development plan. CSG, which is one of the largest ammunition producers in Europe, also has broader ambitions for defense production in Ukraine. This includes the potential manufacture of spare parts and armored components for military vehicles.

CSG's involvement in Ukraine’s defense sector is not limited to this agreement. The company has already supplied around 150 to 160 pieces of military equipment to Ukraine since the Russian invasion began in February 2022. Strnad mentioned that the partnership with Ukrajinska Bronetechnika will resemble the model adopted by the German arms conglomerate Rheinmetall, which formed a joint venture with Ukraine's state-owned defense company Ukroboronprom. This joint venture, based entirely in Ukraine, focuses on maintenance, assembly, manufacturing, and development of military vehicles.

Future Prospects

The primary goal of this new collaboration between CSG and Ukraine is to bolster Ukraine's military production capacities. As Strnad stated, “We are currently negotiating two or three joint venture projects.” If successful, the agreements will likely be finalized this year, with full-scale production commencing within the next three years.

This partnership marks a critical step forward in enhancing Ukraine’s defense production capabilities, which have been under intense pressure since the start of the war with Russia. The collaboration with CSG, a major player in the European defense sector, reflects Ukraine's determination to increase its self-reliance in military supplies and develop a sustainable defense industry capable of supporting its long-term security needs.

 Author: Michal Fencl