Czechoslovak Group Purchases Sole Medium-Caliber Ammunition Manufacturer in the Czech Republic
The Czech defense conglomerate has taken a significant step toward consolidating the full spectrum of artillery ammunition production by purchasing ZVI Vsetín, the country’s sole manufacturer of medium-caliber shells.
Czech defense outlet Armadni Noviny reported on this.
MSM Group, a subsidiary of the Czechoslovak Group, has signed an agreement to acquire a controlling stake in ZVI a.s., a Czech company specializing in the production of medium-caliber ammunition and gun systems.
“ZVI Vsetín is a key component of the Czech defense industry, and its expertise in the development of ammunition, weapons, and gun systems holds strategic value for the CSG group. While this transaction is relatively modest in scale, it is highly significant — it enables us to meaningfully expand our domestic production capabilities for both ammunition and weapon systems within the Czech Republic,” Jan Marinov, head of CSG Defence, stated.
Czechoslovak Group estimates ZVI’s production capacity for medium-caliber ammunition at several hundred thousand rounds annually.
ZVI manufactures a range of 20mm ammunition used by the Czech Air Force, as well as 30mm rounds certified for MK44 Bushmaster II cannons. These cannons are mounted on Czech Pandur II 8×8 armored personnel carriers and will also be featured on the future CV90 infantry fighting vehicles.
The acquisition is part of the Czech group’s broader strategy to scale up its presence in the defense market, expanding its ammunition portfolio and strengthening its overall influence within this sector.
“The aim of CSG is to continuously expand its portfolio of ammunition manufacturers, from small-caliber, as demonstrated by the acquisition of Italian producer Fiocchi, to the production of 155mm artillery shells. The objective is not only to own manufacturing capabilities but also to gain control over the entire supply chain of ammunition materials and components, not just final assembly.
Why ammunition? Because the real business isn’t in selling weapons, but in supplying the ammunition they require. ZVI is just one in a series of acquisitions by CSG, which is actively seeking out and purchasing companies to bring them under a single brand,” Jan Grohmann, Editor-in-Chief of Czech defense outlet Armadni Noviny, noted.
CSG plans to invest in a large-scale modernization and expansion of its newly acquired company, particularly in anticipation of growing order volumes.
Integrating ZVI into the global supply chains of the Czech defense giant will allow the company to reduce reliance on third-party suppliers for specific components, such as propellants.
Among other priorities is the integration of ZVI into the group’s export projects. CSG also plans to invest in the development of new types of ammunition in various calibers, with production to be established directly at ZVI’s facilities. This will significantly boost domestic manufacturing capacity within the Czech Republic.
