Ukraine has launched the planned production of large-caliber ammunition under a license from the Czech arms group Czechoslovak Group (CSG) owned by businessman Michal Strnad. The Czech company provided its Ukrainian partner with know-how and key components, deciding to abandon the originally planned joint venture. According to CSG's Chief Operating Officer David Chour, this is a significant step that will accelerate the transition of production directly to Ukrainian territory.

The project partner is the arms manufacturer Ukrajinska bronetechnika, which will produce shells for tanks and cannons at its factory. The licensing cooperation allows it to have full control over production and to utilize the transferred know-how of the Czech company. According to CSG spokesperson Andrej Čírtek, the choice of the licensing model was motivated by the complexity of the legal regulations for establishing a joint venture and the need to accelerate the localization of production.

CSG focuses on the supply of critical components, such as propellant charges and grenade igniters, but does not manage the production itself. The Ukrainian partner therefore manufactures 105 mm, 120 mm, and 155 mm ammunition according to Czech documentation. According to earlier information, the cooperation is expected to yield up to 100,000 pieces of 155 mm ammunition and 50,000 pieces of 105 mm ammunition this year, with production capacity planned to double from next year.

Initially, approximately half of the planned production will be carried out in Ukraine, with local production later expected to reach up to 80 percent. The total volume depends on Ukraine's financial capabilities and the availability of funds from the Czech Ammunition Initiative, under which foreign donors finance the purchase of large-caliber ammunition.

According to Vladyslav Belbas, director of Ukrainian Armor, the transfer of Czech know-how to Ukraine is essential for the modernization of the Ukrainian defense industry. Jiří Hynek, chairman of the Defense Industry Association, agrees, adding that local production in the hands of a Ukrainian company gives the army the necessary flexibility and increases its independence from imports. Last year and this year alone, CSG supplied Ukraine with a total of more than two million rounds of ammunition, both of its own and foreign production. According to Hynek, licensing cooperation also has commercial benefits for Czech companies – it does not require investment in a factory or production management, but allows them to maintain control over the technology. At the same time, it strengthens long-term relationships with Ukrainian partners, which may be advantageous for Czech exporters in the post-war period.

Prepared by foreign office CzechTrade Romania

Source: e15.cz