Slovakia’s ZVS Receives Seven-Year EU Ammunition Contract

ZVS Holding has signed a framework agreement with the Slovak Defense Ministry for the supply of ammunition to EU member states worth up to €58 billion.

The agreement stipulates that ZVS Holding will supply 155 mm artillery ammunition, 120 mm tank shells, as well as 30 mm and 35 mm gun ammunition not only to Slovakia, but primarily to other EU countries under the SAFE program.

ZVS holding a.s. is a Slovak ammunition manufacturer in which the Slovak Republic holds 50% of the shares and CSG Group holds the other 50%.

The supply of large- and medium-caliber ammunition is to take place over seven years.

This agreement is part of a large-scale project in which Slovakia aims to become a strategic supplier of ammunition to EU member states.

The procurement can be financed under the SAFE program, under which the EU has created a financial mechanism to strengthen the defense capabilities of its members. The amount of €58 billion reflects the maximum potential volume of supplies over a seven-year period.

It is based on the total value of available production capacities and demonstrates the capabilities of the Slovak defense industry in the production of ammunition.

CSG Group has created a unique chain of ammunition producers centered in Slovakia, which ensures supply to customers through production on European territory.

“Our capabilities in the field of large-caliber ammunition were confirmed by the Czech Ammunition Initiative, which significantly helped Ukraine in deterring Russian aggression,” CSG said.

Last year, the company opened a new line for the production of 155 mm artillery ammunition cases in Snina.

A key element of the agreement is the SAFE program, under which EU states can receive loans at 1% per annum with a maturity of up to 40 years to finance existing and new defense projects in strategic areas such as the purchase of ammunition, ground or air defense systems.

Slovakia plans to attract €2.3 billion under the SAFE program, of which €38.5 million will be used to purchase ammunition for the needs of the Slovak Armed Forces.