CSG Subsidiary Wins $632 Million U.S. Army Contract to Build Advanced Ammunition Facility in Iowa

WASHINGTON / PRAHA / IOWA – MSM North America, a U.S.-based subsidiary of the European Czechoslovak Group (CSG), has been awarded a U.S. Army contract worth up to $632 million to design, construct, and commission the Future Artillery Complex (FAC) — the most advanced large-caliber ammunition loading facility in North America.

The contract was signed on August 15 with the U.S. Department of Defense, and the new facility will be located at the Iowa Army Ammunition Plant. Once operational, it will be capable of loading up to 36,000 155mm artillery rounds per month, serving as a core pillar of U.S. and allied defense readiness.

This project marks a historic milestone: a European-owned defense group leading the design and delivery of a strategic U.S. Army facility, reflecting growing transatlantic cooperation in strengthening the industrial base.

Cutting-Edge Facility for Modern Warfare

The FAC will incorporate lean manufacturing principles, advanced robotics, automation, and a fully integrated System Control and Data Acquisition (SCADA) system to ensure operator safety, consistent quality, and rapid product switching with minimal downtime.

The facility will be able to operate both at peak capacity and at a reduced sustaining rate, ensuring cost-effective flexibility during peacetime and wartime. It will give the U.S. Army a modern, scalable capability to meet evolving battlefield demands.

Construction is scheduled to last 40 months, with full commissioning expected in September 2029. The facility will employ around 70 highly skilled personnel and is projected to have a lasting economic impact in the Burlington/Middletown, Iowa region for decades.

Statements from Leadership

Michal Strnad, Owner and Chairman of Czechoslovak Group, praised the achievement:

“This is a tremendous success, made unique by the fact that trust was placed in a company that is part of a European defense group. It proves CSG’s global reach and ability to strengthen allied defense readiness.”

He credited the CSG Defence Division for providing technical expertise and engineering support, which helped secure the project and open new opportunities for MSM North America in the U.S. market.

Jason W. Gaines, CEO of MSM North America, said:

“We are deeply honored by the U.S. Army’s trust. This project reflects the synergy between our American team and CSG’s global expertise. Together, we will deliver a transformative facility for the U.S. defense industrial base.”

Strategic Role of CSG

The contract highlights CSG’s expanding global presence. As one of Europe’s leading defense industrial groups, CSG controls nearly the entire large-caliber ammunition supply chain — from raw materials such as TNT and nitrocellulose to finished 155mm and 120mm rounds — through its vertically integrated network across Slovakia, Germany, Spain, Serbia, and Greece.

The group has significantly increased production capacity for shell bodies and explosive filling, and continues to play a key role in supplying NATO allies and Ukraine with artillery ammunition.

Partners and Compliance

MSM North America will serve as the prime contractor and integrator, managing design, construction, and implementation.

Key U.S. partners include:

• WIELAND (Michigan) – site development and construction
• IPS Custom Automation (Arlington, TX) – robotics and automation
• DetTX (Dallas, TX) – energetics, safety, and environmental compliance
• Cromwell – architecture
• SMS – safety engineering
• Weldon – automation equipment
• VJ Technologies – X-ray systems
• Lee Industries – fabrication

The facility will comply with DoD and OSHA standards, including MIL-STD-882E and DESR 6055.09, and is subject to oversight by the Department of Defense Explosive Safety Board (DDESB) and the EPA.

As a Government-Owned, Contractor-Operated (GOCO) facility, the FAC will enhance surge capacity and supply resilience, directly supporting the U.S. Army’s modernization strategy.

Industrial and Strategic Impact

The Future Artillery Complex is expected to become the primary source for U.S. Army 155mm ammunition loading, with potential to support Foreign Military Sales (FMS) and Direct Commercial Sales (DCS), benefiting all branches of the U.S. Armed Forces.

It represents a major step in modernizing the American defense industrial base, strengthening NATO interoperability, and advancing transatlantic industrial cooperation in line with 21st-century warfare requirements.