ZVS Holding has signed a framework contract with the Slovak Ministry of Defense to provide ammunition to EU member states, with the total value potentially reaching 58 billion euros ($67.41 billion).
The seven-year deal encompasses deliveries of medium- and large-caliber ammunition for Slovakia and participating EU nations, including 155mm artillery rounds, 120mm tank munitions, and 30mm/35mm cannon projectiles.
The framework expects more EU countries to join, offering them access to beneficial financing terms under the SAFE (Security Action for Europe) program.
Through SAFE, EU members can obtain loans at just 1-percent interest, repayable over as long as 40 years, to fund current and future defense initiatives.
Slovakia aims to utilize 2.3 billion euros ($2.67 billion) from SAFE, with 38.5 million euros ($45 million) assigned for purchasing medium- and large-caliber ammunition for its armed forces.
The agreement’s advantages include simplified acquisition procedures, secure European-based production lines, standardized ammunition across participants, bulk-order cost savings, and eligibility for SAFE-backed financing.
Slovakia is encouraging other EU states to adopt the framework via a government-to-government approach, helping avoid scattered procurement processes and expediting delivery of critically needed ammunition.
Slovakia remains an important global producer of large-caliber munitions, a sector that accounts for around 2 percent of the nation’s GDP.
The country’s defense manufacturing base is led by the CSG industrial group, with ZVS Holding serving as its principal Slovak producer and supplying key components throughout its ammunition chain.
ZVS focuses primarily on producing 155mm rounds and is co-owned by the Slovak Republic and the CSG Group.
