Ukrainian Armor received engineering documentation and development support from CSG and has started serial production of 105mm, 120mm, and 155mm shells. CSG supplies critical components, including propellant charges, detonators, and other key elements.
“This is the first time a Western defense company has organized local production of large-caliber shells in Ukraine,” a CSG representative said.
Originally, CSG and its Ukrainian partner considered forming a joint venture. However, “during our review of the legal framework, we faced complex regulatory requirements under Ukrainian law and compatibility issues with Czech legislation,” said Andriy Chirtek, a CSG spokesman. Since Ukrainian Armor already had the necessary permits and could begin production quickly, both sides opted for a licensing model. CSG will not set prices or choose customers; those decisions rest with the Ukrainian partner. In return, CSG will earn licensing fees and supply components.
Under the agreement, Ukrainian Armor may produce up to 100,000 shells of 155 mm caliber and 50,000 of 105 mm caliber in the first year, with plans to then double the capacity, said company head Vladislav Belbas. Initially, about half of the production process will be localized in Ukraine; over time, Ukrainian Armor aims to handle up to 80 percent of all manufacturing under the license.
“The overall annual capacity remains the same, but order volumes will depend on Ukraine’s financial capabilities,” Chirtek said.
Jiří Hynek, president of the Czech Defense Industry Association, said, “For Ukraine, 150,000 large-caliber shells represent nearly a month’s consumption on the front. The project also diversifies supply sources and increases independence.”
CSG is an industrial-technology group specializing in defense, aerospace, automotive and other sectors. Its key manufacturing sites are in the United States, the UK, Spain, Italy, Germany, Czechia, Slovakia, Serbia, Greece, and India. Major subsidiaries include Excalibur Army, Tatra Trucks, MSM Group, The Kinetic Group, and Eldis. The group’s owner and chairman is Czech entrepreneur Michal Strnad.