CSG Partners with Greek State to Revitalise Ammunition Production
Athens, Friday 30 January 2026
CSG secures 25-year managerial control of the Lavrio facility in a strategic €50 million joint venture to restore vital European large-calibre ammunition and explosives production.
Strategic Alignment in Athens
On 29 January 2026, the Dutch-domiciled industrial group CSG N.V. and Hellenic Defence Systems S.A. (HDS) executed the founding documents for Hellenic Ammunition S.A., a new joint venture based in Athens [1][2]. This agreement, signed by Jiří Schönweitz of MSM Greece and Christoforos Boutsikakis of HDS, grants CSG managerial control over the Lavrio production facility for a duration of 25 years [1][2]. The partnership is designed to revitalise Greece’s domestic defence capabilities while integrating the facility into CSG’s broader vertical supply chain, a critical move as Europe seeks to fortify its industrial defence base [1].
Operational Scaling
The Lavrio plant is already operational, currently manufacturing 155 mm calibre ammunition, a standard NATO artillery specification [1]. Under the new management structure, the facility is set to transition into a multi-shift operating regime in 2026 to meet elevated demand [2]. This operational ramp-up is not merely about volume; it involves the introduction of additional calibres throughout the year, diversifying the plant’s output portfolio to support both Greek and allied defence requirements [1].
Workforce Expansion and Technical Upgrades
To support this intensification of production, the joint venture has outlined an aggressive recruitment strategy. The facility, which currently employs approximately 120 staff, plans to recruit an additional 180 employees within the current year [1]. This represents a significant workforce expansion of 150 per cent, aiming to reach a total headcount of around 300 by the end of 2026 [2]. This influx of human capital is essential for managing the complex manufacturing processes required for modern large-calibre munitions.
Reviving European Explosives Capacity
The production of explosives has long been a bottleneck for Europe, largely due to the historical outsourcing of energy-intensive processes to other regions [1]. The Lavrio project aims to reverse this trend by restoring TNT production, a technologically complex endeavour that includes not only nitration but also the manufacturing of key intermediate products [1]. Production in this segment is scheduled to begin at the turn of 2026 and 2027 [2]. To underpin these extensive modernisation efforts, CSG has committed to investing up to €50 million into the joint venture over the long term [1].