The memorandum confirms the completion of key contractual documentation leading to the establishment of the joint venture and the construction of a manufacturing plant for Modular Artillery Charge Systems (MACS). The project also reaffirms the partners’ commitment to continue cooperation in developing new defence industry production capacity in Europe.
The facility will be located in the cadastral area of the town of Strážske in eastern Slovakia. Construction is expected to begin in the near term, with production capacity scheduled to become operational in 2028.
The planned annual output will reach several hundred thousand modular propellant charge systems. Total investment in the project is estimated at approximately €300 million.
Kaliňák said the project builds on earlier efforts to revive production capacity in eastern Slovakia. “As early as 2024, together with MSM GROUP, we began with the revitalisation of the former Chemko Strážske facility with the aim of establishing production capacity for modular propellant charge systems for large-calibre ammunition.”
“The signing of the memorandum on the establishment of this new plant in eastern Slovakia represents an important step towards strengthening the domestic defence industry and strategic self-sufficiency,” he added. “An investment amounting to hundreds of millions of euros and the creation of hundreds of qualified jobs constitute a significant contribution not only to the region but also to the security of the Slovak Republic as a whole.”
“It is also another step towards achieving annual production volumes exceeding one million rounds of large-calibre ammunition,” Kaliňák said. The facility is intended to strengthen both national and European defence production capabilities.
Since 2015, ZVS holding has been jointly owned by the Slovak state enterprise DMD Group and MSM GROUP, which is part of the industrial and technology group CSG through its CSG Defence Systems division. The ammunition companies within MSM GROUP and CSG are among Europe’s leading manufacturers of large-calibre ammunition and provide capabilities across the entire ammunition life cycle, including development, modernisation, life extension and disposal.
EURENCO is described as the European champion and one of the world’s leading manufacturers of energetic materials and subcomponents for ammunition. Its production portfolio includes Modular Artillery Charge Systems, with the largest manufacturing capacity for these systems in Europe.
The new joint production plant will focus on the manufacture of MACS, a key component of modern artillery ammunition used by NATO member states. The availability of such propellant charge systems is currently one of the main limiting factors in increasing artillery ammunition production capacity in Europe.
The project builds on long-term cooperation between MSM GROUP and EURENCO in the field of energetic materials production and supply. It is intended to strengthen the European defence industrial base and secure supply chains for critical ammunition components.
Jan Marinov, Director of CSG Defence Systems, described the initiative as a major step in expanding European production capacity. “This project represents a major milestone in the development of European production capacities for key components of artillery ammunition.”
“The combination of EURENCO’s technological expertise and the industrial strength of CSG will enable us to build a modern production facility that will contribute to supply chain stability and strengthen Europe’s ability to respond to growing security needs,” he said.
The joint venture will combine EURENCO’s expertise in energetic materials with the industrial infrastructure and manufacturing experience of CSG Group and the Slovak state-owned company ZVS holding. The new facility is expected to play an important role in expanding European capabilities in the production of modular propellant charges.
Thierry Francou, Chief Executive Officer of EURENCO, said the cooperation represents an important development for the European defence sector. “The creation of this joint venture is a new key milestone for European sovereignty.”
“By combining EURENCO expertise with CSG and ZVS holding, we are building a modern and agile production capacity that is essential to meet today’s security challenges,” Francou added. “This project further strengthens EURENCO’s position as the European champion in energetics materials such as propellant, explosives and Modular Artillery Charge Systems ensuring the stability and reinforcing the robustness of the supply chain for large-caliber ammunition in Europe.”
