Czech Defence Group with Cold War Roots Aims for Global Expansion

Post by : Saif Nasser

A Czech defence company that began by reworking old Cold War military equipment is now aiming to become a global player in the defence industry. Czechoslovak Group, known as CSG, is preparing for a major stock market listing and looking to expand into new technologies and new markets around the world.

CSG’s story began in the 1990s, when its founder Jaroslav Strnad bought Soviet-era military equipment mainly for scrapping. Over time, the business changed direction. Instead of dismantling weapons, it began modernising and producing them. Today, the company makes ammunition, military trucks, armoured vehicles and rocket launchers.

The company’s growth accelerated sharply after Russia invaded Ukraine. European governments increased defence spending, and CSG moved quickly to expand production. Its owner and chief executive, Michal Strnad, said the company invested heavily early in the conflict, taking risks that paid off as demand surged.

Now 33 years old, Strnad took over the business from his father and is leading it into a new phase. CSG is preparing for a possible initial public offering, or IPO, on the Euronext Amsterdam exchange. Sources say the listing could raise more than three billion dollars, making it one of Europe’s largest IPOs this year.

CSG is also expanding through acquisitions. In 2024, it bought a U.S.-based ammunition maker in a deal worth more than two billion dollars. The company plans to make more purchases so it can control more of its supply chain. Strnad says this will help CSG avoid depending too much on outside suppliers and protect its profits.

The company is also looking beyond traditional weapons. It wants to move into areas such as jet engines for drones and missiles. Talks are underway to expand cooperation with the United States, including possible production linked to a new air and missile defence system. CSG is studying locations in U.S. states like North Carolina and Wisconsin to localise production.

Despite strong demand, challenges remain. A future peace deal in Ukraine could reduce orders, as about one-third of CSG’s recent revenue is linked to the conflict. Larger rivals in Europe often dominate major defence contracts, and modern warfare is changing quickly with more focus on drones and advanced missiles.

Even so, analysts say demand for defence equipment still exceeds supply and is likely to stay strong for years. CSG’s revenue has grown rapidly, rising almost nine times between 2021 and 2024. The company expects further growth this year and has a large order backlog, showing continued interest from governments around the world.

CSG now employs around 14,000 people and has projects across Europe, the United States and Asia. With new deals, new technologies and a planned IPO, the company hopes to move from a regional supplier into a truly global defence manufacturer.