Slovakia Positions Itself as Europe’s Ammunition Anchor With €58 Billion Supply Framework

ZVS Holding has signed a landmark framework agreement with the Ministry of Defense of the Slovak Republic enabling ammunition deliveries to EU partners worth up to €58 billion over seven years, supported by potential financing through the EU SAFE defense instrument.

ZVS Holding a.s. — owned equally by the Slovak state and the CSG Group — will serve as the core production pillar of what Bratislava calls a pan-European ammunition supply architecture, centered on 155 mm artillery rounds, 120 mm tank ammunition, and 30/35 mm cannon munitions. The seven-year ceiling reflects the maximum industrial output available across Slovak facilities and signals a long-term shift toward collective EU procurement based explicitly on domestic production capacity.

The agreement is structured so that EU and NATO members can join under a government-to-government format, bypassing fragmented tenders and accelerating time-to-delivery for high-demand calibers. Crucially, states participating in the Slovak Ammunition Initiative can tap SAFE — a financing tool offering 1% interest and up to 40-year repayment horizons for defense-industrial projects.

Strategic Consolidation of Europe’s Ammunition Base

Deputy Prime Minister and Minister of Defense Robert Kaliňák framed the deal as the culmination of Slovakia’s emergence as a European artillery hub:

“Slovakia has, in recent years, become a strategic producer of large-caliber ammunition at both the European and global levels. We therefore have the ambition to become a leader in the supply of ammunition for EU member states.”

ZVS Holding, headquartered in Dubnica nad Váhom, is already responsible for ammunition output equaling 2% of Slovak GDP, an outsized figure for a country of its size. The vertically integrated manufacturing chain — built and expanded under the CSG umbrella — consolidates component suppliers, explosive filling, metalwork, and final assembly inside EU borders, eliminating critical dependencies on non-allied inputs.

Jan Marinov, CEO of CSG Defense, underscored that the chain has already been combat-validated:

“The Czech Ammunition Initiative proved our ability to provide sustained artillery supply for Ukraine. The Slovak initiative now scales that model to the entire EU.”

SAFE: Europe’s Financial Lever for Strategic Re-Armament

The agreement’s political weight is inseparable from SAFE — the EU’s flagship defense-financing mechanism approved in 2025, with a capacity of €150 billion in low-interest loans.

Slovakia aims to draw €2.316 billion, with €38.5 million earmarked for its own ammunition purchases. Other allocations include CV90 IFVs, domestic EVA howitzers, SkySense counter-drone systems, and allied small-arms programs.

Poland remains the biggest SAFE applicant at €43.7 billion, followed by Slovakia and the Czech Republic. The program’s central condition — EU-origin value dominance in financed projects — directly strengthens Slovakia’s position as Europe’s artillery factory floor.

A Turn Toward Collective Stockpiling — and Away From Crisis Procurement

The €58 billion framework is not simply a purchase ceiling. It functions as Europe’s move from crisis-driven ammunition sourcing to structural, guaranteed, and jointly financed stockpiling.

Advantages for EU states include:

• Guaranteed delivery slots from EU territory
• Standardization of calibers across multiple armies
• Volume-indexed discount mechanisms
• Simplified G2G acquisition pathways
• Full compatibility with SAFE’s financing envelope

Jakub Krchňavý, CEO of ZVS Holding, emphasized the societal dimension:

“This is not only industrial. It is strategic and societal. Europe’s ability to deter relies on stable, transparent ammunition production — and Slovakia now commands a central role in that.”

Industrial Implications

• Europe shifts artillery manufacturing away from ad-hoc imports into a sovereign production bloc.
• CSG-ZVS becomes the EU’s primary scalable ammunition node for 155 mm, 120 mm, and 30–35 mm.
• SAFE transforms seven-year supply certainty into 40-year financing security.

With political alignment, industrial capacity, and supranational financing converging, Slovakia has effectively maneuvered itself into the role of ammunition guarantor for the EU’s decade of re-armament.