CSG Expands Germany Footprint With EUR 100M Gnaschwitz Investment
CSG has acquired the Gnaschwitz industrial site in Saxony and will invest more than EUR 100 million to establish energetic materials and ammunition production, strengthening Europe's defense supply chain and expanding its manufacturing base in Germany.
CSG has completed the acquisition of the 57-hectare Gnaschwitz industrial site near Bautzen in Saxony, Germany, marking another major expansion of the Czech industrial group's European defense manufacturing network. The company plans to invest more than EUR 100 million during the site's initial development phase to establish production of nitroglycerin, nitroglycerin-based energetic materials, and future ammunition manufacturing capabilities. The purchase strengthens CSG's strategy of securing critical defense supply chains within Europe at a time of sustained demand for ammunition production.
The site was acquired through CSG Energetic Materials Germany GmbH from MAXAM. Financial terms of the acquisition were not disclosed. According to the company, the investment is intended to improve European access to strategic energetic materials that remain one of the principal bottlenecks in ammunition production.
Gnaschwitz strengthens CSG's energetic materials strategy
The new facility will primarily manufacture nitroglycerin and related products used in double-base and triple-base propellants for small, medium, and large-caliber ammunition. CSG also plans to prepare the site for future production of ammunition and ammunition components, allowing the location to support both internal group requirements and external customers.
The project complements CSG's earlier acquisition of the MSM Walsrode facility in Lower Saxony, where the group is expanding production from industrial nitrocellulose into energetic nitrocellulose used for military ammunition. Together, the two German facilities establish a vertically integrated production chain covering key energetic materials required for modern ammunition manufacturing.
Germany becomes a key manufacturing hub
Gnaschwitz has produced energetic materials since 1874 and already possesses industrial infrastructure suitable for defense manufacturing. CSG expects the first development phase to create up to 125 new jobs while leaving room for future expansion into medium-caliber ammunition, tank ammunition, 120 mm mortar ammunition, and additional ammunition component production.
The investment also reflects Germany's growing importance within Europe's expanding defense industrial base. Rather than building a new greenfield facility, CSG is leveraging an established industrial location with existing infrastructure and chemical manufacturing heritage, reducing development timelines while preserving an important production site.
European ammunition production remains the priority
The acquisition comes as European governments continue investing in long-term ammunition production capacity following several years of elevated demand across NATO. While much attention has focused on final ammunition assembly, manufacturers increasingly identify energetic materials such as nitrocellulose and nitroglycerin as critical supply constraints.
By combining its Walsrode and Gnaschwitz investments, CSG is positioning itself to reduce dependence on external suppliers while strengthening European production resilience. The strategy aligns with broader efforts across the continent to localize key defense-industrial capabilities and secure supplies of strategic chemical inputs for ammunition manufacturing.
Related: CSG Aims to Start In-House Military Nitrocellulose Production at Walsrode within Two Years
Q&A
Why did CSG acquire the Gnaschwitz site?
The acquisition expands CSG's production of energetic materials that are essential for manufacturing modern ammunition and supports the company's vertically integrated production strategy.
How much will CSG invest?
The company plans to invest more than EUR 100 million during the initial development phase.
What will be produced in Gnaschwitz?
The facility will produce nitroglycerin and other energetic materials, while later phases are expected to include ammunition and ammunition component manufacturing.
Why is this important for Europe?
European ammunition production increasingly depends on secure supplies of energetic materials. The investment strengthens domestic manufacturing capacity and reduces reliance on external suppliers.
