CSG Aims to Start In-House Military Nitrocellulose Production at Walsrode within Two Years
Czech defense conglomerate Czechoslovak Group (CSG) is preparing to begin military-grade nitrocellulose production within the next two years, as part of its vertical integration strategy in ammunition manufacturing.
PRAGUE / WALSDORF – Czech defense conglomerate Czechoslovak Group (CSG) is preparing to begin military-grade nitrocellulose production within the next two years, as part of its vertical integration strategy in ammunition manufacturing. The company plans to repurpose and modernize the formerly IFF-owned Walsrode plant in Lower Saxony, Germany, which it acquired in late 2024.
Under IFF's previous ownership, the Walsrode facility produced nitrocellulose for civilian industries such as coatings and printing inks. CSG intends to convert part of the factory to handle energetic nitrocellulose, a core propellant and explosive component used in artillery ammunition.
“Production has not yet started. The facility needs to be retooled or expanded to manufacture energy-grade nitrocellulose. The timeline is two years,” said Jan Hamáček, director for external relations at CSG.
This move, once completed, will enable CSG to close a major gap in its supply chain by producing the propellant component internally—rather than relying on external suppliers. Part of the rationale is to ensure strategic autonomy and supply security for ammunition chains, especially in times of heightened demand.
CSG’s acquisition of IFF’s nitrocellulose business, including the Walsrode Industrial Park, was officially concluded in May 2025. The site includes robust infrastructure such as a railway siding and cogeneration plant, which CSG sees as advantageous for its expansion plans.
CSG intends for the new nitrocellulose operations to support its own ammunition lines—from shell bodies to propellants—and to bolster its role as a trusted supplier to NATO and allied nations.
The expanded factory will be known as MSM Walsrode under CSG ownership. The name change was confirmed in May 2025, and the company has already begun managerial and corporate restructuring. Initially, the plant will continue civil nitrocellulose output while preparing the transition to energetic-grade production.
If all goes as planned, Walsrode could become one of the few facilities in Europe capable of delivering the full chain of large-caliber munition manufacturing—from propellant and explosives to final assembly.
