ZVS Holding and Eurenco Sign Memorandum to Set Up New Ammunition Company
Bratislava, 4 March (TASR) - Semi-state-owned company ZVS Holding and French state-owned company Eurenco have signed a memorandum based on which a new company for producing artillery powder charges, a component of artillery ammunition, is to be set up in Slovakia, Defence Minister Robert Kalinak (Smer-SD), ZVS Holding board chairman Jakub Krchnavy and Eurenco director Thierry Francou told a press conference on Wednesday.
The company is expected to build a factory on the former Chemko Strazske site in Kosice region.
The minister pointed out that such production is lacking in the Slovak defence industry. "It can be said that by signing this agreement, we're essentially completing the process of acquiring the entire cycle of production of components that we need to manufacture our large-calibre ammunition products ... This is what is probably of greatest interest on the European market today, and we have long lacked this capability," he said.
The minister further stated that the factory will need around 300 workers, and he expects new jobs to be created, not only at the factory itself, but also in other manufacturing facilities. According to him, this is a positive boost for the region and for the entire Slovak economy. He believes that the construction should be considered to be a strategic investment.
Krchnavy stated that the company expects to start production in 2028. The factory should manufacture several hundred thousand powder cartridges annually. According to him, there are no obstacles to construction. The environmental damage at the Chemko Strazske site isn't located in the areas where construction is planned. "The total investment in the project is approximately €300 million," he noted, adding that this will fundamentally strengthen the capabilities of ZVS Holding.
The Eurenco director described the joint project as a strategic milestone in the production of powder charges. According to him, it's a new capability that will enable the supply chain to become more resilient. "It will also support Europe's autonomy and sovereignty in the production of artillery shells," he said, emphasising the need to accelerate ammunition production in Europe, partly in view of the security situation.
