Slovak ZVS Holding Secures Seven-Year EU Ammunition Framework Agreement Valued Up to €58 Billion

Slovak Company Enters Major EU Ammunition Supply Deal

ZVS Holding, a prominent Slovak ammunition manufacturer, has formally entered into a significant seven-year framework agreement with the Slovak Defense Ministry. This agreement is designed to facilitate the supply of ammunition to European Union member states, with a potential value reaching up to €58 billion. The deal positions Slovakia to become a strategic supplier within Europe's defense industrial base.

Scope and Financial Framework of the Agreement

Under the terms of the framework agreement, ZVS Holding will provide a range of large- and medium-caliber ammunition. This includes crucial types such as 155 mm artillery ammunition, 120 mm tank shells, and 30 mm and 35 mm gun ammunition. The supplies are intended for Slovakia's own needs and, primarily, for other EU countries.

The substantial figure of €58 billion represents the maximum potential volume of deliveries over the seven-year period, reflecting the company's available production capacities. This initiative, dubbed the 'Slovak Ammunition Initiative,' aims to offer EU member states a transparent government-to-government (G2G) procurement process, ensuring long-term delivery certainty, unified ammunition standards, and potential volume discounts.

Leveraging the EU's SAFE Program

A key component of this agreement is the potential financing through the EU's Security Action for Europe (SAFE) program. Approved in 2025, the SAFE program provides a financial mechanism for EU member states to strengthen their defense capabilities. It offers favorable long-term loans from the European Commission, with interest rates as low as 1% per annum and repayment periods extending up to 40 years, specifically for defense projects like ammunition procurement.

Slovakia itself plans to draw €2.3 billion from the SAFE program, with €38.5 million specifically allocated for the purchase of large- and medium-caliber ammunition for its own armed forces.

Strategic Ambition and Production Expansion

The agreement underscores Slovakia's ambition to become a leading supplier of ammunition for EU member states. ZVS Holding is jointly owned by the Slovak Republic (50%) and the CSG Group (50%), an industrial conglomerate led by Czech entrepreneur Michal Strnad.

In anticipation of increased demand, ZVS Holding has been actively investing in expanding its production capabilities. Recent efforts include the inauguration of a new production line for 155 mm artillery ammunition in Snina, eastern Slovakia, with a goal to reach an annual production of 360,000 units by 2026. These investments aim to meet the growing demand for ammunition across Europe.