Defense industry: CSG open to new agreements in Greece

Czech defense giant CSG is seeking synergies and new business opportunities in Greece, following the agreement for the establishment of a strategic joint venture between MSM Export, a member of the CSG group, and Hellenic Defense Systems for the production of ammunition. An agreement that, as it is emphasized, is only the beginning.

The group’s goal is to create a success story in our country on the model of similar investments that it has implemented in other European countries, constituting a major employer of the Greek defense industry, while at the same time strengthening Greece’s role in Europe’s defense autonomy through its presence. According to the CSG group, ReArm Europe is a vital opportunity under specific conditions, however, with priority given to investments in strategic defense products.

As David Chour, Vice-Chairman of the Board of Directors Chief Operating Officer, of the CSG (Czechoslovak Group) group, emphasized during the briefing of European journalists at the company’s headquarters and factory units in Prague, Czech Republic, in the presence of “Naftemporiki”, “we aim to make the CSG group one of the leading defense companies in the world.

This goal also determines our next moves in terms of acquisitions and areas of activity.”

According to Chour “our latest acquisitions were in the USA and Germany. Our aim is to strengthen our presence in the USA where we are also exploring our next acquisition, in parallel with our consolidation in Europe.”

CSG Group in Greece

Speaking to “N”, Andrej Čírtek, Spokesman, Czechoslovak Group a.s. regarding the development of the CSG Group’s presence in Greece following the announcement of the joint venture between MSM Export and Hellenic Defence Systems, he stressed that “the production of 155 mm artillery shells at the Lavrion plant has already resumed, thanks to the transfer of technology and know-how from MSM Export, by the MSM Group, a member of the CSG Group, creating dozens of new jobs.

The joint venture project between the CSG Group and Hellenic Defence Systems (EAS), which was approved by the board of directors and the general assembly of EAS, will be officially established in the coming months. The joint venture is supported with 33 million euros from the EU’s ASAP (Act in Support of Ammunition Production) program and 50 million euros from CSG.

TNT production is scheduled to begin in spring 2027 to meet ASAP grant requirements. The agreement also includes the production of basic dispersion components, medium caliber ammunition (20-30 mm and 40 mm), small caliber cartridges (5.56 mm, 7.62 mm, 12.7 mm) and an ammunition remanufacturing assembly line.

The production of 120 mm Leopard 2 tank shells is planned for future integration, strengthening Greece’s defense industry and aiming to create 300-400 new jobs within three years.

Regarding the establishment of CSE Greece and its scope of activity, Čírtek emphasized that “yes, CSE Greece has been established as a commercial agency of the Czechoslovak Group in Greece, operating under our main commercial agency, Czechoslovak Export. Its activities focus on promoting the defense and industrial portfolio of the CSG group in the Greek market.

The ammunition production project in Lavrio is managed separately by MSM Export, a member of CSG, and is not related to CSE Greece. Through CSE Greece, the CSG group aims to offer the Greek Armed Forces products such as rocket launchers on Tatra chassis or firefighting equipment, tailored to their specific needs, while also exploring further cooperation opportunities.

Asked how the various CSG group companies that are now active in Greece are connected, Čírtek clarified that “the activities of the Czechoslovak Group (CSG) in Greece include distinct roles in all its subsidiaries, which are coordinated to support our strategic goals.

Lavrio Ammunition Production: The Lavrio project is managed by MSM Group, the subsidiary of the CSG group focused on the production of large-caliber ammunition, with facilities in Spain, Slovakia and Serbia.

Specifically, the joint venture with Hellenic Defense Systems is managed by MSM Export, a subsidiary of MSM Group, which oversees the technology transfer, production scale-up and operational management for 155 mm projectiles and future TNT production.

Product Offerings: CSG Group offers the Greek market products such as missile launchers and the Patriot 4×4 armored vehicle, both built on a Tatra chassis. These are manufactured by Excalibur Army, a CSG company specializing in military vehicles and equipment, tailored to the needs of the Greek Armed Forces.

Commercial Representation: CSG Group’s main commercial division, Czechoslovak Export, established CSE Greece as a local office to maintain a permanent presence in Greece and strengthen our business activities in the region. CSE Greece facilitates negotiations and explores opportunities for projects with Greek firefighters and the Armed Forces, promoting the broader portfolio of the CSG group.

Regarding the ReArm Europe program and under what conditions it can ensure Europe’s defense autonomy, Čírtek pointed out that “the recently announced ReArm Europe program offers a vital opportunity to enhance Europe’s defense autonomy by strengthening critical production capabilities. CSG Group and its subsidiaries, including MSM Group, are evaluating potential projects to leverage this funding, balancing it with our strong access to bank financing, while taking into account the cost of capital. Our experience with EU programs, such as securing 30 million euros from ASAP for the TNT production project in Lavrio, demonstrates our ability to manage complex regulations. To succeed, ReArm Europe must streamline processes, prioritize investments in strategic products such as ammunition and raw materials, and strengthen collaboration between governments, regulators and industry leaders, such as CSG, to reduce dependence on non-European supply chains and address vulnerabilities.”