The industrial and technology group CSG has completed the acquisition of the 57-hectare industrial site Gnaschwitz, located near Bautzen in Saxony, through its German subsidiary CSG Energetic Materials Germany GmbH. The corporate group announced this on Tuesday. The site was acquired from the previous operator, the Spanish MAXAM. As part of the first phase of site development, CSG plans to invest more than 100 million euros.
With this step, the group intends, according to its own statements, to build production capacities for nitroglycerin and nitroglycerin-based products, while simultaneously expanding the manufacture of ammunition and munition components. The purchase price of the transaction was not disclosed. Through the takeover, CSG continues to expand its market presence in Germany and takes another step in the group’s strategy to build a vertically integrated European value chain for explosives and ammunition.
Acquisition in Gnaschwitz follows MSM-Walsrode plant in Bomlitz
Moreover, the takeover underscores, according to the press release, CSG’s long-term commitment to the German and European defense industry. The investment follows the acquisition of the MSM-Walsrode plant in Bomlitz, where CSG is currently expanding industrial nitrocellulose production with energetic nitrocellulose for ammunition manufacture. In Gnaschwitz, explosives have been produced since the founding of the “Royal Saxon Powder Factory Gnaschwitz” in 1874.
“The European defense industry needs not only larger production capacities for ammunition but also a reliable supply of strategic energetic materials, without which no ammunition can be manufactured. The acquisition of the Gnaschwitz industrial site builds on our previous activities in Walsrode and is another important step in strengthening CSG’s vertical integration as well as ensuring supply continuity and the resilience of the European defense-industrial base,” said Jan Marinov, CEO of CSG Defence Systems.
Investment in the production of energetic materials
In addition, the announcement emphasizes the group’s long-term commitment to expanding manufacturing capacity in Germany, one of the most important locations of the European defense industry. CSG plans to establish modern production capacities for nitroglycerin and other nitroglycerin-based products at the Gnaschwitz site. These substances are important components in the production of both two-base and three-base propellants, which are used as energetic charges for small-, medium-, and large-caliber ammunition.
The project, according to the press release, creates significant synergies within the CSG group, particularly between the CSG Medium & Large Calibre and Ammo+ business units. At the same time, it further strengthens the group’s self-sufficiency with strategic energetic materials. The production of nitroglycerin and related products will be carried out for both CSG companies and external customers.
