ZVS Holding has finalized a framework agreement with the Slovak Ministry of Defense to supply ammunition to European Union countries, with a potential value reaching 58 billion euros ($67.41 billion).
The seven-year contract includes the provision of medium- and large-caliber munitions for Slovakia and other EU members, such as 155mm artillery shells, 120mm tank ammunition, and 30mm and 35mm cannon rounds.
The framework is designed to expand as additional EU states join the initiative, granting them access to favorable financing options under the SAFE (Security Action for Europe) program.
SAFE enables EU countries to secure loans at a 1-percent interest rate, with repayment terms extending up to 40 years, to support ongoing and future defense projects.
Slovakia intends to draw 2.3 billion euros ($2.67 billion) from SAFE, including 38.5 million euros ($45 million) earmarked for acquiring medium- and large-caliber ammunition for its armed forces.
Key benefits of the agreement include streamlined procurement, dependable Europe-based production, standardized ammunition across participating countries, bulk-purchase discounts, and potential access to advantageous financing through SAFE.
Slovakia is urging other EU members to join the framework using a government-to-government model, helping avoid fragmented tenders and speeding up deliveries of high-demand munitions.
The country is already a significant global producer of large-caliber ammunition, a sector that contributes roughly 2 percent to its GDP.
The CSG industrial group underpins this capability, with ZVS Holding acting as its principal Slovak manufacturer and supplying essential components across the group’s ammunition production chain.
ZVS specializes in 155mm artillery rounds and is jointly owned by the Slovak government and the CSG Group.
