The acquisition was completed through CSG Energetic Materials Germany GmbH, the group’s German subsidiary. CSG purchased the site from MAXAM, while the transaction price was not disclosed.
The investment expands CSG’s industrial presence in Germany and advances its vertically integrated European ammunition strategy. The group is seeking greater control over the supply chain from energetic materials and components to finished ammunition.
“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. The acquisition of the Gnaschwitz site builds on our activities at Walsrode and marks another important step in strengthening CSG’s vertical integration, security of supply and the resilience of the European defence industrial base,” said Jan Marinov, CEO of CSG Defence Systems.
“At the same time, it underlines our long-term commitment to expanding manufacturing capabilities in Germany, one of Europe’s key defence industrial hubs,” Marinov said. Gnaschwitz will become the group’s second strategic investment in German energetic-materials production.
CSG plans to build modern capacity for nitroglycerin and other nitroglycerin-based products at the site. These materials are used in double-base and triple-base propellants for small-, medium- and large-calibre ammunition.
The planned production will supply CSG companies and external customers. The project is expected to create industrial links between the group’s CSG Medium & Large Calibre and Ammo+ divisions.
The first development phase will also include preparations for ammunition and ammunition-component production. CSG said the expansion would address rising demand across the German and wider European markets.
The completed projects are expected to create up to 125 new jobs. The site will retain substantial infrastructure and space for additional investment after the initial development phase.
Potential future projects include the assembly of medium-calibre ammunition, tank rounds and 120 mm mortar ammunition. CSG is also considering further component manufacturing and other defence-industrial activities at Gnaschwitz.
The site has an industrial history dating to 1874 and has long been associated with energetic-materials production. Its existing technical facilities provide the foundation for CSG’s planned expansion.
The acquisition follows CSG’s purchase of the MSM Walsrode facility in Bomlitz, Lower Saxony. The group signed the agreement with International Flavors & Fragrances in October 2024 and completed the transaction in May 2025.
CSG is expanding Walsrode’s industrial nitrocellulose operations to include energetic nitrocellulose for ammunition production. The Gnaschwitz and Walsrode sites will form the core of the group’s German energetic-materials platform.
Together, the facilities are intended to reduce CSG’s dependence on external suppliers and strengthen access to strategic materials. They will support the group’s integrated production chain while adding capacity to Europe’s defence industrial base.
