A major step toward increasing Ukraine’s domestic munitions output has begun: the Czechoslovak Group (CSG) has helped establish licensed production of large‑caliber artillery rounds on Ukrainian soil through a local partner, Ukrainian Armor (Ukrajinska Bronetechnika). Under the agreement, CSG transferred a production license, technical documentation and key high-tech components, while the Ukrainian firm carries out local manufacturing, final assembly and testing.
CSG executives say the arrangement is intended to speed up localization of ammunition manufacture and bolster Ukraine’s ability to source a portion of its artillery needs domestically. Initial annual output is set at 100,000 shells of 155 mm caliber and 50,000 rounds of 105 mm, with plans to scale capacity several fold in the coming years and increase local content to about 80 percent.
David Chour, CSG’s vice‑chair, described the move as an important milestone in Western‑Ukrainian industrial cooperation. A company spokesperson clarified that CSG does not directly operate factories in Ukraine: the Ukrainian partner runs production, having received the license and know‑how, while CSG continues to supply critical items such as propellant charges, fuzes and initiators and to provide ongoing technical assistance. The group will be recompensed through license fees and component sales, the spokesperson said.
The decision to use a licensing model was driven by practical and legal considerations, CSG explained. Attempts to establish a joint venture revealed regulatory mismatches between Czech and Ukrainian law; transferring a license proved a faster route to get production started on the ground.
Ukrainian Armor is producing shell casings domestically and handling the filling and final quality controls. The project envisages a phased transfer of fuze‑component production into Ukraine as local capabilities expand.
“This cooperation is a significant step toward strengthening Ukraine’s defense capabilities and diversifying its supply sources. Every single piece of ammunition produced is vital for the country’s defense,” said Vladyslav Belbas, CEO of Ukrainian Armor.
For CSG, the program also fits into a broader strategy of deepening ties with Ukraine’s defense sector. The company’s licensed production initiative complements its involvement in the Czech Ammunition Initiative — an international donor‑backed effort that remains a principal channel for supplying large‑caliber rounds to Ukraine.