ZVS Holding has reached a significant milestone by securing a framework agreement with the Slovak Ministry of Defense, enabling the supply of ammunition to various EU countries, with a potential value reaching 58 billion euros ($67.41 billion). This comprehensive seven-year agreement is aimed at delivering medium- and large-caliber ammunition, including essential military materials such as 155mm artillery rounds, 120mm tank rounds, and 30mm and 35mm cannon projectiles.
One of the standout features of this framework is its capacity to allow additional EU countries to join the initiative, thus unlocking access to advantageous financing conditions under the SAFE (Security Action for Europe) program. Under this scheme, EU member states can secure loans at a mere 1% interest rate, with repayment terms extending up to 40 years, specifically designated to support both new and existing defense projects.
The Slovak government plans to utilize approximately 2.3 billion euros ($2.67 billion) from the SAFE program. Notably, around 38.5 million euros ($45 million) of this funding is earmarked for the purchase of large- and medium-caliber ammunition intended for the Slovak Armed Forces.
Jakub Krchňavý, CEO of ZVS Holding, emphasized the importance of this agreement, stating, “The conclusion of the framework agreement represents one of the most significant milestones in the modern history of ZVS. It confirms that our long-term investments in technology, people, and production quality have elevated Slovak ammunition to the absolute top tier in Europe.” Krchňavý added that the European Union’s commitment to bolstering defense capabilities and increasing security expenditures is paving the way for stable and transparent long-term ammunition deliveries within Europe.
The project presents several advantages, including a streamlined procurement process, reliable production bases within Europe, standardized ammunition across participating states, volume-based discounts, and the possibility of favorable financing via the SAFE program. Slovakia aims to encourage other EU nations to join this framework through a government-to-government model, which allows for quicker deliveries of much-needed ammunition while fostering collaboration and cohesion within the EU defense infrastructure.
Slovakia is already a notable player in the global ammunition production sector, contributing roughly 2 percent to its GDP. The CSG industrial group serves as a cornerstone of this industry, with ZVS Holding acting as the primary Slovak manufacturer, producing essential components that form the backbone of the group’s ammunition supply chain. ZVS is particularly known for its production of 155mm rounds and operates as a joint venture between the Slovak Republic and the CSG Group.
Jan Marinov, CEO of CSG’s Defense division, underscored the significance of this framework, stating, “The CSG Group has succeeded in building a unique chain of ammunition manufacturers with a core in Slovakia, ensuring reliable supplies for our customers from production located on European soil.” He highlighted the positive impact of the Czech Ammunition Initiative, which has played a crucial role in supporting Ukraine against Russian aggression. Marinov expressed confidence in the Slovak Ammunition Initiative, noting that it has the potential to greatly enhance the defense capabilities of EU states, with CSG ready to leverage its production capacities to support this endeavor.
