Czechoslovak Group and Hellenic Defence Systems Sign Foundational Agreements for Ammunition Joint Venture in Lavrio
Czechoslovak Group and Greece’s state-owned Hellenic Defence Systems have formalized key documentation to establish a joint ammunition production company at the Lavrio facility, marking a significant step in revitalizing domestic ordnance manufacturing
Czech industrial-defence group Czechoslovak Group (CSG) and Greek state-owned Hellenic Defence Systems (HDS) have completed the signing of foundational agreements to set up a joint ammunition manufacturing venture at the Lavrio site in Greece. The moves formalize plans to restore and expand ordnance production capabilities that have been dormant for years.
The new Greek legal entity, commonly referred to as Hellenic Ammunition S.A., will combine CSG’s industrial scale with HDS’s existing infrastructure. Under the arrangement, CSG is expected to contribute capital, industrial know-how and supply chain integration, while HDS will provide the Lavrio facilities and relevant workforce access. The venture is part of Greece’s broader strategy to strengthen its defense industrial base and reduce reliance on imports for critical ammunition components.
Financial support for the project is expected from the European Union’s Act in Support of Ammunition Production (ASAP) programme, enabling parts of the investment to be co-funded with EU defence-industrial resilience budgets. Under current planning, revitalization of TNT explosive manufacturing — a core input for artillery shells — is targeted for a 2027 start to meet ASAP grant timing. Medium and large-calibre artillery rounds, propellant charges and ancillary components such as primers are also planned within the joint venture’s scope.
Industry sources indicate the venture will enable Greece to re-establish sovereign production of key ammunition classes previously sourced abroad. Lavrio’s restart is expected to create jobs locally and signal Greece’s intent to play a more substantive role in European defence industrial supply chains. CSG’s involvement builds on its broader expansion in European ordnance manufacturing, including similar capacity-building efforts in other EU states.
For CSG, the Lavrio project extends its portfolio beyond its existing ammunition operations and reinforces its position covering medium and large-calibre munitions across NATO states. For Hellenic Defence Systems, the joint venture represents a pivotal shift toward public-private cooperation after years of limited domestic production activity.
