The Czechoslovak Group (CSG) and state-owned Hellenic Defence Systems (HDS) have signed the foundational agreements to establish a joint venture for large-calibre ammunition production in Greece.

The move, formalised in Athens on 30th January 2026, marks a concerted attempt to revitalise domestic defence manufacturing and reduce Europe’s reliance on external suppliers of critical ammunition components and munitions.

The newly incorporated entity — Hellenic Ammunition S.A. — will be based at the historic defence production site in Lavrio, southeast of Athens. Under the terms of the joint venture, CSG’s subsidiary, MSM Greece, will assume managerial control of the facility for 25 years, embarking on an ambitious modernisation programme that aims to elevate the site into a major centre of military production.

Current operations at Lavrio already include the manufacture of 155 mm artillery ammunition, one of the most sought-after calibres by European armed forces and NATO partners. Over the course of 2026, the plan is to introduce additional calibres and expand production through multi-shift regimes, making the plant a round-the-clock producer of critical munitions.

The venture also represents a bid to reinstate explosives production on European soil — notably including TNT — a capability that has been largely offshored in recent decades due to the energy intensity and environmental complexity of such processes. Production of TNT and key intermediate compounds is slated to begin between 2026 and 2027, signalling a return of full ammunition manufacturing capability to Greek soil.

The human and economic impact of the initiative should not be understated. The Lavrio facility currently employs around 120 workers — a figure expected to more than double to some 300 by the end of 2026 as expansion efforts take hold. For Greece, with its long-standing aspirations to bolster indigenous defence industry capacity, such an injection of skilled jobs and investment is significant.

CSG has pledged substantial long-term investment, committing up to €50 million toward the development of the joint venture’s facilities and capabilities. With European Union support, including grants under initiatives such as the ASAP (Act in Support of Ammunition Production) programme, the project not only strengthens Greece’s industrial base but also contributes to wider European strategic autonomy in ammunition supply.

This partnership arrives at a moment of heightened geopolitical uncertainty. Throughout 2025 and into 2026, European nations have been seeking to shore up defence readiness in response to evolving security challenges, from Russia’s war in Ukraine to persistent tensions in the Eastern Mediterranean. Greece itself has recently moved to modernise its artillery and rocket artillery capabilities, underscoring the growing importance of a resilient and reliable supply of ammunition.

The creation of Hellenic Ammunition S.A. speaks directly to these imperatives: by reinforcing domestic capacity, Greece — and by extension the EU and NATO — reduces dependence on foreign production pipelines that can be vulnerable to disruption in times of crisis. It also places Greece more firmly on the European defence manufacturing map, a position that Athens has long sought after years of industrial stagnation following economic turmoil earlier in the century.

For CSG, the venture consolidates and extends an already substantial footprint within the European defence industrial network. The group, headquartered in the Czech Republic, has been expanding its production chain across the continent with facilities in Slovakia and beyond, aiming to offer a vertically integrated suite of ammunition components and final products.

In Lavrio, this strategic integration will be visible in the production of raw materials, explosive filling, and finished ammunition — an end-to-end capability that not only improves supply chain resilience but also enhances quality control and production flexibility. The scale of this integration has broader implications for European military preparedness, particularly as NATO members emphasise self-sufficiency in critical military supplies.

As Hellenic Ammunition begins operations and the Lavrio site ramps up, the venture stands as a clear testament to Greece’s and CSG’s mutual commitment to strengthening Europe’s defence industrial base. With expanded employment, technological investment, and production capacity, the joint venture is likely to become a pivotal player in regional defence supply chains.

In a world where strategic autonomy increasingly matters, the resurrection of large-calibre ammunition production on Greek soil is not merely an industrial milestone — it is an affirmation of Europe’s resolve to build and sustain its own critical defence capabilities.

Main Image: http://www.defenceimagery.mod.uk/fotoweb/fwbin/download.dll/45153802.jpg

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