The defense industrial group will build nitroglycerin and ammunition production capacity at the Saxony site as it expands its European energetic-materials footprint.
CSG has bought the Gnaschwitz industrial site in the German state of Saxony from Spanish explosives maker MAXAM and plans to invest more than EUR 100 million in the first development phase. The site is intended for production of nitroglycerin and nitroglycerin-based products, while also being developed for ammunition and ammunition component manufacturing. CSG Defence Systems CEO Jan Marinov said the European defence industry needs both more ammunition capacity and reliable supplies of strategic energetic materials. Once the planned projects are completed, the site is expected to create up to 125 new jobs. The deal marks another acquisition in Germany for CSG as it expands its industrial footprint in the country.