Slovensko can be a strategic producer of ammunition for EU states, with a Czech arms manufacturer also involved
Prague/Bratislava – The company ZVS Holding has concluded a framework agreement with the Ministry of Defence of the Slovak Republic for the supply of large- and medium-calibre ammunition for the states of the European Union (EU), with a value of up to 58 billion euros. This was stated by the CSG group of Czech entrepreneur Michal Strnad, which holds a 50% stake in the Slovak ammunition manufacturer. The other half belongs to the Slovak state. TASR reports this on the basis of a report from the IDNES portal.
The concluded contract is based on the maximum possible production volume and is intended to serve as a common platform to which other European governments can join. According to the Ministry of Defence of the Slovak Republic, Slovakia could thus become one of the strategic suppliers of ammunition for the EU.
The European programme SAFE will help secure financing for purchases with an interest rate of around 1% and a maturity of up to 40 years.
The IDNES portal, referring to the Minister of Defence Robert Kaliňák (Smer-SD), stated that negotiations are already underway with several states that want to join the initiative.
The industrial group Czechoslovak Group (CSG) is also gradually to become involved in the framework agreement between ZVS Holding and the Ministry of Defence of the Slovak Republic. According to its head Jan Marinov, the CSG Defence division has production capacities on European territory and wants to participate fully in the project.
The company ZVS stated that the contract represents one of the biggest milestones in its modern history. ZVS is to be the main supplier of artillery ammunition of 155 millimetre (mm) calibre, tank ammunition of 120 mm calibre and cannon ammunition of 30 and 35 mm.
The project promises, among other things, the unification of ammunition types between several states, volume discounts and long-term security of supplies from European plants.
Slovakia is among the leading global producers of large-calibre ammunition
Slovakia is among the leading global producers of large-calibre ammunition. According to available data, ammunition production accounts for approximately 2% of Slovakia’s gross domestic product (GDP). The key enterprise of the entire production chain is the ZVS factory in Dubnica nad Váhom. The SAFE programme allows EU member states to draw favourable loans of up to 150 billion euros for defence projects. Slovakia wants to use 2.3 billion euros from the programme, of which almost 40 million euros will go towards the purchase of ammunition for its own armed forces. (5 December)
