The Czech arms company Excalibur Army, which modernizes tanks for Ukraine, is investing in expanding its own production capacity due to an increase in demand for military equipment.

More than 27 million euros will be spent to construct another production workshop and install the new equipment at the Sternberk plant, Radio Prague International reports.

Excalibur Army, which is a member of the Czechoslovak Group (CSG) engineering and weapons holding, recently won a contract to upgrade 90 Т-72 tanks.

Financing of the repair and renewal of tanks is conducted as part of military assistance to Ukraine at the expense of the United States and the Netherlands.

The United States and the Netherlands will restore 45 pieces of equipment each, with the total value of the work being approximately $90 million.

Deliveries of the retrofitted tanks were due to begin late last year and be completed in 2023.

The Excalibur Army reportedly delivered about 100 units of military equipment to Ukraine in 2022. These included modernized Т-72 tanks, artillery systems, rocket launchers, and infantry fighting vehicles (IFVs).

For this, the plant had to increase its staff by 150 people. Refugees from Ukraine are also working in production.

Retrofitted tanks have a more powerful engine, new communication systems, modern aiming systems, and additional reactive armor.

It is noted that the company is able to retrofit up to five tanks each month.

The modernization of one single tank takes from several weeks to several months, primarily due to the poor condition of the tanks. The Czech enterprise classified a complete list of the exact equipment installed on the modernized tanks.

On January 9, it was announced that soon, a batch of restored and modernized Т-72 tanks will arrive in Ukraine.