MSM Group completes acquisition of nitrocellulose production facility in Germany

The acquisition marks a significant step in strengthening the stability of nitrocellulose supply within Europe. The Walsrode plant was previously owned by IFF, a global leader in flavours, fragrances, food ingredients, health, and biosciences, and produced nitrocellulose strictly for industrial applications, particularly for coatings and printing inks.

CSG intends to maintain the plant’s existing industrial operations while gradually enabling the production of energetic nitrocellulose, crucial for defence purposes. This transition will require further investments, facility expansion, and the necessary approvals from regulatory authorities.

Jan Marinov, CEO of the CSG Defence Division, highlighted the importance of this acquisition in the current geopolitical context: “Chemical production, including, at times, production for the purposes of the defence industry, has already taken place at the Walsrode Industrial Park. In the current situation as well, when the chemical industry in Europe is facing high energy prices and demanding regulation, the production of nitrocellulose for the ammunition industry and other important industries, such as printing inks and coatings, can ensure long-term prospects for companies operating in this field.”

Marinov also stressed the strategic importance of maintaining independent nitrocellulose production in Europe: “Energetic nitrocellulose production is strategically important for the security of NATO and EU countries and their allies. Europe must not fall into dependence on imports for such a strategic commodity, as it is necessary to have security of supply even in a crisis.”

This acquisition forms part of CSG’s broader strategy to create a vertically integrated ammunition production chain. Marinov explained: “The insufficient European capacity to produce ammunition, especially large-caliber ammunition, is a security threat for NATO countries and their allies. This is why we have been working hard for several years and investing hundreds of millions of euros in establishing vertically integrated production of large-caliber ammunition within CSG, from input commodities and semi-finished products to the final product. This acquisition has brought us significantly closer to our goal.”

Located in Bomlitz, the Walsrode industrial park spans 87.5 hectares and is a key hub for cellulose chemistry, plastics processing, and mechanical engineering. It boasts state-of-the-art infrastructure, making it an attractive site for companies across diverse industries, including renewable raw materials and food processing.

The acquisition agreement, signed on October 4, 2024, and completed in May 2025, ensures that MSM GROUP will take over all existing liabilities and continue the plant’s operations independently. The transition process includes stabilizing support functions, implementing a new ERP system, and aligning management processes with MSM GROUP’s standards.

Marinov noted the priority of integrating the business smoothly into MSM GROUP: “After the closing of the transaction, we need to stabilize the support functions and integrate the business into MSM GROUP. This means completing the implementation of the new ERP system, rebuilding key support functions by hiring new employees and implementing management processes according to the requirements of MSM GROUP.”

With the acquisition, MSM GROUP solidifies its presence in Germany, becoming both a manufacturer and employer in one of Europe’s most economically significant countries. The Walsroder brand will continue to be used for nitrocellulose products, although the IFF trademarks and logos will be phased out.