Ukrainian Armor will receive licenses for the production of tank and artillery shells from the European defense holding Czechoslovak Group.

Vladyslav Belbas, CEO of Ukrainian Armor, told Militarnyi.

In October of this year, the companies signed an agreement to transfer licenses to the Ukrainian company for the production of various artillery ammunition of NATO calibers. The full list of ammunition to be produced has now been made public:

• 155mm M107 artillery round;
• 155mm L15 artillery round of increased power;
• 155mm HE ER-BT/BB MKM/VMK long-range artillery round;
• 105mm M1 NE high explosive artillery round;
• 120mm tank round of an unnamed type.

A license is a permit, as well as the transfer of technology and production documentation for robots and components to be manufactured in Ukraine.

“Obtaining technology transfer licenses is a lengthy process. The supplier company expects to receive such a license this year,” says Vladyslav.

At the start of the project, more than 50% of the work will be localized in Ukraine: “Then, according to the plan, we are going to produce 80% of the volume in Ukraine, and continue to import 20%.”

According to the company’s plans, the localization of production of Western ammunition will begin with M107 shells, followed by long-range 155 mm rounds. The production of 105 mm and 120 mm ammunition is scheduled for 2026.

The production of this range of ammunition will be deployed at the new facilities that have already been partially commissioned. Expected volumes are estimated at hundreds of thousands of shells per year.

“It regards the production and supply of about 100,000 rounds of ammunition next year, and more than 300,000 in 2026. The state is interested in guaranteed supplies at competitive prices with the involvement of its own manufacturers,” says CEO of Ukrainian Armor.

When asked about the competitiveness of Ukrainian-made shells compared to their Western counterparts, he said that the planned cost of the shots would be slightly lower, with the possibility of further reduction in the event of deeper localization and increased production.

“When it comes to quality, we are fully competitive with imported products. As for the price, it will be slightly lower than imported counterparts, with the possibility of further reduction in case of deeper localization and increased production,” says Belbas. “We can also mention the guaranteed volumes of supplies that do not depend on the military and political situations of partner/donor countries.”

Earlier on Security Talks, Vladyslav Belbas called the agreement a mega-project to provide NATO with artillery ammunition.

“This agreement was concluded on the most favorable terms of cooperation. Since the key issue in the production of artillery ammunition is the availability of powder charges and components (fuze, capsule, etc.), it is important for us that the European side guarantees us the supply of components. Because in parallel in Europe, this company is building powder plants, developing existing lines, and investing. In return, we guarantee the purchase of certain volumes of finished products, which is important for our partners. This is a good project in terms of the trade balance, because by doing some of the work in Ukraine, we reduce the cost of products,” he said.

In September, Militarnyi reported that Ukrainian Armor planned to expand the production of artillery ammunition by constructing a new plant in Ukraine.

Currently, Ukrainian Armor produces a full range of mortar shells, from 60 to 120 mm, as well as 122 mm artillery rounds, with the annual output exceeding 100,000 shells.