Czechoslovak Group (CSG) became one of the first Western companies to localize the production of large-caliber shells in Ukraine. According to the agreement, Ukrainian Armor will produce Czech ammunition by the end of 2024. However, the previously announced model of cooperation has changed from a joint venture to a licensing one.
Czechoslovak Group (CSG) became one of the first Western companies to localize the production of large-caliber shells in Ukraine. According to the agreement, Ukrainian Armor will produce Czech ammunition by the end of 2024. However, the previously announced model of cooperation has changed from a joint venture to a licensing one.
Ukraine has begun production of large-caliber ammunition under a license granted by CSG, the company’s press service reports. The project partner is Ukrainian Armor, which received technological documentation and developments from CSG and has already begun mass production of shells for tanks and artillery systems. In addition to the license and technological base, CSG supplies critical components — in particular, powder charges, detonators and other key elements of ammunition. This is the first time a Western defense company has organized the localization of large-caliber shells in Ukraine.
At the same time, the cooperation scheme was changed: the parties abandoned the initial idea of creating a joint venture in favor of a licensing model due to regulatory and bureaucratic issues.
«While studying the legal framework for creating a joint venture, we encountered complex regulatory requirements of Ukrainian legislation and problems of its compatibility with Czech law,» explained CSG spokesman Andriy Chirtek.
Since Ukrainian Armor already had the necessary technologies and could start production fairly quickly, this was the main factor in deciding on a new format of cooperation. CSG will not participate in determining pricing policy or selecting customers; all key decisions are made by the Ukrainian partner. The Czech group will receive its benefits in the form of license fees and component supplies.
CSG emphasizes the long-term significance of this agreement for both companies and countries: the sale of licenses and the transfer of technology form the basis for future cooperation, particularly in the post-war period.
According to the licensing documentation, Ukrainian Armor will produce ammunition of 105 mm, 120 mm, and 155 mm calibers.
«As in the initial agreements, in the first year of cooperation, the production of up to 100,000 shells of 155 mm caliber and 50,000 of 105 mm caliber is envisaged, but in the future the capacity is planned to be doubled,» says the head of the enterprise Vladyslav Belbas, «while at the initial stage we will localize about 50% of production, and over time the Ukrainian plant will produce up to 80% of all ammunition provided for by the agreement.»
The total annual capacity remains unchanged, but the volume of orders depends on Ukraine’s financial capabilities, a CSG spokesman said.
