Ukrainian Armor and Czechoslovak Group launch large-calibre ammunition production in Ukraine

Large-calibre ammunition production has been launched in Ukraine under a licence granted by the Czech defence holding company Czechoslovak Group (CSG). Ukrainian Armor, Ukraine's largest private arms manufacturer, is the local partner in the project.

Source: Czechoslovak Group

Details: CSG said Ukrainian Armor received technical documentation and designs and has begun mass-producing shells for tanks and artillery systems. In addition to the licence and technological base, CSG supplies critical components, particularly propellant charges, detonators and other key elements of ammunition.

CSG described this as the first case of a Western defence company localising large-calibre shell production in Ukraine. Under the licensing agreement, Ukrainian Armor will produce 105 mm, 120 mm and 155 mm ammunition.

"As per the initial agreements, in the first year of cooperation we plan to produce up to 100,000 shells of 155 mm calibre and 50,000 of 105 mm calibre, but production capacity is expected to double later… At the initial stage, around half of the production will be localised, and over time, the Ukrainian plant will manufacture up to 80% of all ammunition specified in the agreement," said Vladyslav Belbas, CEO of Ukrainian Armor.

Meanwhile, CSG spokesperson Andrej Čírtek clarified that the total annual production capacity remains unchanged, but the volume of orders depends on Ukraine's financial capacity. He noted that the Czech-led ammunition supply initiative, through which international donors finance large-calibre shell purchases, remains key due to limited Ukrainian resources.

CSG also said that a licensing model was chosen instead of the initially proposed joint venture.

"When analysing the legal framework for establishing a potential joint venture, we encountered complex Ukrainian regulations and compatibility issues with Czech law," Čírtek explained.

The Czech company added that since Ukrainian Armor already had the necessary technologies and could quickly start production, this became the decisive factor for choosing the new cooperation format.

"Our group does not determine pricing policy or customer selection. We benefit from the project through license fees and the supply of critical components," Čírtek stated.

CSG emphasised the long-term significance of the agreement for both companies and nations, saying that the sale of licences and technology transfer form a foundation for future cooperation, including in the post-war period.

CSG focuses on developing and manufacturing strategically important products, systems and technologies in defence, aerospace, automotive and other sectors. Its key production facilities are located in the United States, the United Kingdom, Spain, Italy, Germany, Czechia, Slovakia, Serbia, Greece and India.

Ukrainian Armor specialises in the production of armoured vehicles, mortars and ammunition, anti-aircraft systems and protective armour. In September, the company announced the start of mass production of an FPV drone equipped with a 60-mm mortar bomb.

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