Czech Republic Wants to Sell Explosives Manufacturer Explosia

The Czech government plans to sell Explosia, a company specializing in the production of explosives.

This was reported by the agency CZDEFENCE, citing Czech First Deputy Prime Minister and Minister of Industry and Trade Karel Havlíček.

According to preliminary estimates, the deal could be worth 15-17 billion Czech korunas, equivalent to approximately $720-820 million.

Currently, six companies have expressed interest in acquiring Explosia, including the Czech Colt CZ Group SE and the French Eurenco.

“This year is favorable for concluding the deal, as the state-owned company is demonstrating strong sales figures and, accordingly, has significant market value. In my opinion, it would be advisable to attract additional capital, while the state could retain, for example, a ‘golden share’ and the ability to influence the company’s operations,” Havlíček stated.

According to him, the arrival of a strategic investor would contribute to the company’s further development and help reduce competitive pressure, which the state would find more difficult to withstand on its own.

“Discussions are currently underway regarding what share of the company will be sold and what powers will be attached to the ‘golden share,’” Havlíček noted.

He added that one of the main motivations for the potential sale of Explosia is the prospect of using the proceeds to increase funding for the Czech Ministry of Defense.

In 2026, the defense ministry’s budget amounts to 154 billion crowns, or about 7.4 billion U.S. dollars, which corresponds to less than 1.8% of the country’s gross domestic product.

Since 2020, Explosia has been wholly state-owned, with its shares controlled by the Czech Ministry of Industry and Trade.

The company produces industrial and military explosives, ammunition, and other energy materials.

Following the outbreak of Russia’s full-scale war against Ukraine and a sharp increase in demand for artillery ammunition and explosives, the company has taken on significantly greater strategic importance than it had in previous decades.