Czech arms manufacturers thrive amid global tensions

5 months ago 24

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News Based on facts, either observed and verified directly by the reporter, or reported and verified from knowledgeable sources.

Some of Czechia's largest companies in the sector reported record sales last year, such as Colt CZ, which made a profit of almost €600 million, according to Novinky.cz. [Shutterstock/Nordroden]

Czech arms manufacturers are thriving and reporting record sales as a result of the war in Ukraine and heightened global tensions, Czech media report.

Some of Czechia’s largest companies in the sector reported record sales last year, such as Colt CZ, which made a profit of almost €600 million, according to Novinky.cz.

Omnipol and Czechoslovak Group (CSG) also posted very good results in 2023. The latter’s growth was mainly driven by the production of large-calibre ammunition and military ground equipment. Most of its production went to NATO countries and a significant share to Ukraine.

STV Arms Group continues to increase its production of ammunition, especially large-calibre ammunition. Over the past two years, the total volume of production at some of its production facilities has increased approximately tenfold. Most of the deliveries go to Ukraine, either directly or through European and US government programmes, as well as to the Czech Army and other NATO armies.

The development of the Czech arms industry should also be helped by last year’s requirement that the Czech state spend at least 2% of GDP on defence each year.

And arms companies believe there will be interest in their products even after the war in Ukraine ends, as NATO armies empty their warehouses and look to restock.

Meanwhile, Czechia remains staunchly pro-Ukraine, and has been called out by neighbouring Slovakia for having an ‘interest’ in the war continuing.

(Ondřej Plevák | Euractiv.cz)