ZVS Holding a.s., a Slovak ammunition manufacturer in which the Slovak Republic holds a 50% stake and the CSG Group holds the remaining 50%, has concluded a framework agreement with the Ministry of Defense of the Slovak Republic for the supply of large-caliber and medium-caliber ammunition worth up to EUR 58 billion over a period of seven years. The agreement is part of an ambitious project under which Slovakia would become a strategic supplier of ammunition for EU member states. Purchases may be financed through the SAFE program, under which the EU has created a favorable financial framework to strengthen the defense capacities of its member states.
The EUR 58 billion figure reflects the maximum potential volume of deliveries over the seven-year period. It is based on the total value of available production capacity and demonstrates the capabilities of the Slovak defense industry in ammunition manufacturing. The scope of the framework agreement anticipates that other European states will join it as well, thus gaining an effective instrument for procuring ammunition under advantageous financial conditions.
Deputy Prime Minister and Minister of Defense of the Slovak Republic Robert Kaliňák states: “Slovakia has, in recent years, become a strategic producer of large-caliber ammunition at both the European and global levels. The Slovak ammunition industry makes a crucial contribution to the security of EU and NATO member states and at the same time represents a significant economic benefit in terms of tax revenues and job creation. Slovakia therefore has the ambition to become a leader in the supply of large- and medium-caliber ammunition for EU member states and offers them a unique format for its procurement through the SAFE program. Negotiations are already underway with several interested parties who wish to join this Slovak Ammunition Initiative.”
Jan Marinov, CEO of the CSG Defense division, states: “The CSG Group has succeeded in building a unique chain of ammunition manufacturers with a core in Slovakia, which ensures reliable supplies for our customers from production located on European soil. CSG’s capabilities in the field of large-caliber ammunition were confirmed by the Czech Ammunition Initiative, which has significantly contributed to Ukraine’s defense against Russian aggression. We welcome the Slovak Ammunition Initiative, which can substantially strengthen the defense capabilities of EU states, and we are ready to fully contribute to it with our production capacities.”
Jakub Krchňavý, CEO of ZVS Holding, adds: “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. Thanks to the European Union’s decision to significantly strengthen defense capacities and increase security spending, a space is opening for stable, transparent, and long-term sustainable deliveries of European ammunition. The commitment we are taking on is not only technological and industrial, but also societal. It contributes to Europe’s security while strengthening the Slovak defense industry and employment in the region.”
The agreement anticipates that ZVS Holding a.s. will become a supplier of 155 mm artillery ammunition, 120 mm tank ammunition, and 30 mm and 35 mm cannon ammunition not only for Slovakia, but especially for other EU member states. The Slovak Republic is offering EU member states the opportunity to join the framework agreement in a G2G (government-to-government) format.
The advantages of the project include a transparent and procedurally simple procurement process, long-term certainty of deliveries from production located on European territory, unification of ammunition standards among multiple states, quantity discounts enabled by an embedded discount mechanism dependent on the purchased volume, and finally, the possibility to use the EU SAFE program, which provides unique financing conditions.
Slovakia is a strategic global producer of large-caliber ammunition, whose production already accounts for 2 percent of Slovak GDP. A key role in building the Slovak ammunition industry is played by the CSG industrial group, which has succeeded in creating a vertically integrated chain of manufacturing companies producing various ammunition components, with its core located in Slovakia. The central Slovak company within this production chain is ZVS Holding, which manufactures primarily 155 mm ammunition in Dubnica nad Váhom. In this company, the Slovak Republic and the CSG Group each hold a 50 percent stake.
Crucial to the agreement is the EU SAFE program, under which EU member states can obtain loans with a 1 percent interest rate and a repayment period of up to 40 years to finance both existing and new defense projects in strategic areas such as ammunition procurement, ground systems, or air defense systems. The Slovak Republic aims to draw EUR 2.3 billion from the SAFE program, of which EUR 38.5 million is allocated for the purchase of large- and medium-caliber ammunition for the needs of the Slovak Armed Forces.
About the SAFE Program
SAFE is a new joint defense instrument of the European Union, approved in 2025, which enables member states to draw favorable long-term loans from the European Commission of up to EUR 150 billion. The aim of the program is to rapidly strengthen the EU’s defense capabilities, increase the capacity of the European defense industry, and accelerate deliveries of key equipment.
SAFE makes it possible to finance both ongoing and new projects in several priority areas:
The program also requires that most of the value of the projects come from the European or allied industrial base, thereby contributing to strengthening the EU’s defense autonomy.
Among the 19 EU member states that have applied for SAFE defense project financing, Poland ranks first, planning to use EUR 43.7 billion. The Slovak Republic has an allocation of EUR 2.316 billion under SAFE. The Czech Republic plans to use EUR 2 billion from the program.
Slovakia intends to use SAFE specifically to co-finance the purchase of CV90 tracked infantry fighting vehicles, small arms, Slovak EVA self-propelled howitzers, and the SkySense counter-drone system.
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