ZVS Holding a.s., a Slovak ammunition manufacturer in which the Slovak Republic holds a 50% stake and the CSG Group holds the remaining 50%, has concluded an agreement with the Ministry of Defence of the Slovak Republic for the supply of high and medium caliber ammunition worth up to 58 billion euros over a period of seven years.
The agreement forms part of an ambitious project that would see Slovakia become a strategic supplier of ammunition for EU member states. The purchases could be financed through the SAFE programme, through which the EU has created a favourable financial framework to strengthen the defence capabilities of its member states.
The sum of 58 billion euros reflects the maximum potential volume of deliveries during the seven-year period. It is based on the total value of the available production capacity and demonstrates the capabilities of the Slovak defence industry in ammunition production. The scope of the framework agreement envisages that other European states may also join, thus obtaining an effective tool for ammunition procurement under advantageous financial conditions.
Reactions
Robert Kaliňák, Deputy Prime Minister and Minister of Defence of the Slovak Republic, states, “In recent years Slovakia has become a strategic producer of high caliber ammunition both at European and global level. The Slovak ammunition industry provides a crucial contribution to the security of EU and NATO member states while representing a significant economic benefit in terms of tax revenue and job creation. Slovakia therefore has the ambition to become a leader in the supply of high and medium caliber ammunition to EU member states and offers them a unique format for their procurement through the SAFE programme. Negotiations are already underway with several interested parties wishing to join this Slovak ammunition initiative.”
Jan Marinov, CEO of the BKS Defense division, says, “CSG Group has managed to build a unique supply chain of ammunition manufacturers based in Slovakia, which ensures reliable deliveries to our customers from production located on European soil. CSG’s capabilities in the field of high-caliber ammunition were confirmed by the Czech Ammunition Initiative, which made a significant contribution to Ukraine’s defence from Russian aggression. We welcome the Slovak ammunition initiative, which can significantly strengthen the defence capabilities of EU states, and we are ready to fully contribute with our production capacities.”
Jakub Krchňavý, CEO of ZVS Holding, adds, “The conclusion of the framework agreement is one of the most significant milestones in the modern history of ZVS. It confirms that our long-term investments in technology, human resources and production quality have brought Slovak ammunition to absolute heights in Europe. Thanks to the European Union’s decision to significantly enhance defence capabilities and increase security spending, there is an opening for long-term, transparent and sustainable supplies of European ammunition. The commitment we are taking on is not only technological and industrial, but also social. It contributes to the security of Europe while at the same time strengthening the Slovak defence industry and employment in the region.”
What the Agreement Includes
The agreement provides for ZVS Holding a.s. to become a supplier of 155 mm artillery ammunition, 120 mm tank ammunition and 30 mm cannon ammunition not only for Slovakia, but especially for EU member states that do not have their own production capacity and have to cope with shortages of ammunition in their stockpile.
The Slovak Republic offers EU member states the possibility to join the framework agreement in a G2G (Government-To-Government) format.
The benefits of the project include a transparent and procedurally simple procurement process, long-term certainty of deliveries from production located on European territory, the unification of ammunition standards among many states, quantity discounts made possible by an integrated discount mechanism depending on the volume purchased and, finally, the ability to use the EU SAFE programme, which offers unique financing conditions.
The Role of Slovakia
Slovakia is a strategic global producer of high-caliber ammunition, the production of which already represents 2% of Slovak GDP. A crucial role in building the Slovak ammunition industry is played by the CSG industrial group, which has managed to create a vertically integrated chain of manufacturing companies that produce various components for ammunition, with its core located in Slovakia.
The central Slovak company within this production chain is ZVS Holding, which mainly produces 155 mm ammunition in Dubnica nad Váhom. In this company, the Slovak Republic and the CSG Group each hold a 50% stake.
Essential for the agreement is the EU’s SAFE programme, under which EU member states can obtain loans with an interest rate of 1% and a repayment period of up to 40 years to finance existing and new projects in strategic sectors such as ammunition procurement, ground systems or air defence systems. The Slovak Republic intends to draw €2.3 billion from the SAFE programme, of which €38.5 million is earmarked for the purchase of high and medium caliber ammunition for the needs of the Slovak armed forces.
Information on the SAFE Program
SAFE is a new EU joint defence instrument approved in 2025 that allows member states to obtain long-term subsidized loans from the European Commission up to a maximum of 150 billion euros. The goal of the program is to quickly bolster the EU’s defence capabilities, increase the European defence industry’s capacity and accelerate the delivery of key equipment.
SAFE allows for financing both ongoing and new projects in various priority areas:
- Munition and artillery systems,
- Ground combat platforms and ground force support,
- Air and missile defence,
- Drones and anti-drone systems,
- Strategic capabilities such as C4ISTAR, logistics, mobility,
- Cyber defence and protection of critical infrastructure.
The programme requires a majority of the project value to come from the European or allied industrial base, thereby helping to strengthen the EU’s defence autonomy.
Among the 19 EU member states that have applied for SAFE defence project funding, Poland is in first place, planning to utilize €43.7 billion. The Slovak Republic has an allocation of €2.316 billion under the SAFE programme, while the Czech Republic plans to use €2 billion from the programme.
Slovakia intends to use SAFE specifically to co-finance the purchase of CV90 tracked infantry fighting vehicles, light weapons, Slovak self-propelled howitzers EVA and the SkySense anti-drone system.
Source and photo credit @Czechoslovak Group a.s./Barabino & Partners
