Published:20.08.2025
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Czechoslovak Group’s subsidiary Secures US Army Contract to Build America’s Most Advanced Ammunition Facility

The US Army has awarded a USD 632 million contract for the construction of the world’s most advanced 155mm ammunition filling facility at the Iowa Army Ammunition Plant, with full operations scheduled to commence in early 2029.

MSM North America, part of the global Czechoslovak Group (CSG), has been awarded a major contract by the United States Army to design, construct and commission the most advanced large-calibre ammunition filling facility in North America.

The agreement, signed between MSM North America and the US Department of Defense, covers the Future Artillery Complex (FAC), which will be built at the Iowa Army Ammunition Plant. Valued at up to USD 632 million, the facility will have the capacity to fill as many as 36,000 artillery shells of 155mm calibre per month, establishing itself as a critical pillar of defence readiness for the US and its allies. Notably, this represents a rare case in which a strategic project for the US Army has been entrusted to a company owned by a European defence group.


The FAC will provide the Army with a scalable, flexible and cost-effective plant for the explosive filling, assembly, and packaging of large-calibre ammunition. It will incorporate lean manufacturing principles, advanced robotics, automation, and fully integrated control and data systems to ensure operator safety and consistent product quality.


State-of-the-art technology will allow seamless switching between product types with minimal downtime, while maintaining cost-efficient operations at both maximum output and lower sustainable production levels. This ensures the US Army has access to an effective ammunition filling capability under any security scenario.


Securing this contract marks a unique milestone, underlining the strengthening of transatlantic ties between Europe and the United States. CSG played a decisive role in winning the tender, drawing on its global expertise in ammunition production and the technical support of specialists from CSG Defence, including engineering staff from several of its European plants.


The project enhances CSG’s position as a trusted partner in the international defence industry and opens new growth opportunities for MSM North America in the United States market, the company emphasised.


CSG, one of Europe’s leading defence and industrial groups, is a key manufacturer of large-calibre ammunition, distinguished by its strong vertical integration. Unlike many competitors, the company controls almost the entire supply chain – from raw materials such as TNT and nitrocellulose through to finished ammunition in calibres including 155mm and 120mm. Its production facilities are located across Spain, Germany, Slovakia, Serbia and Greece. This integrated approach ensures high-quality, resilient supply chains capable of meeting strict NATO standards and fulfilling critical defence needs, including significant deliveries of 155mm artillery shells and other munitions to Ukraine.


Through ongoing expansion, including the scaling-up of production capacity and the launch of TNT and nitrocellulose manufacture, CSG is reinforcing its role as a crucial supplier to NATO allies and Ukraine, thereby contributing to Europe’s resilience and global security.


According to CSG, the FAC will be the world’s most advanced plant for 155mm ammunition filling using molten explosive casting, along with associated assembly processes. Construction is expected to be completed within 40 months, with full commissioning and production scheduled for September 2029. The facility will employ around 70 highly skilled staff across production, quality assurance, and operational support.


Source:
https://www.byznysnoviny.cz
Author: CzechTrade Australia