Global industrial-technology group CSG has secured two major contracts for the supply of mechanical and electronic fuzes for large-calibre ammunition, with a total value in the high tens of millions of euros. The components were ordered by two European customers from NATO member countries. The production of the electronic fuzes will also involve Fuchs Electronics Europe, a new business to be established between CSG and South Africa's Reunert in Slovakia. These are long-term contracts, with deliveries set to begin this year.
The new contracts build on CSG's long-term efforts to strengthen its manufacturing and technological capabilities in large-calibre ammunition. They also confirm growing demand from European customers for strategically important components and underline the importance of resilient supply chains within the European defence industry.
"These contracts confirm that CSG is among the key European players in large-calibre ammunition and a manufacturer of critical components. Fuzes are strategically important and a technologically demanding component of artillery ammunition. Fuchs Electronics Europe will play an important role in fulfilling these contracts, combining Fuchs' technological know-how with CSG's industrial base in Slovakia. Through this business, we will strengthen the European manufacturing base and increase the availability of electronic fuzes for customers from NATO member countries as well as other European ammunition manufacturers," said Jan Marinov, CEO of CSG Defence Systems division.
The fuze is a critical component of every artillery shell. It determines when and how detonation is initiated. In modern artillery ammunition, including 155 mm ammunition, fuzes play an essential role not only in the munition's effect, but also in its accuracy, reliability and deployment across different operational scenarios.
Modern electronic fuzes enable multiple modes of operation, including impact detonation, delayed detonation, timed detonation and airburst at a precisely defined altitude above the target. Compared with mechanical fuzes, they offer greater accuracy, enhanced flexibility of use and improved compatibility with modern fire control systems. Their production requires specialised know-how, precision electronics, a qualified industrial base and strict quality control processes.
"Today, the European defence industry needs to increase capacity not only in ammunition production itself, but also in the production of its most important components. This is why CSG is investing in vertical integration, technological know-how and the localisation of production in Europe. Our goal is to strengthen the ability of European countries to replenish stocks of modern ammunition and to remain a reliable partner to the armed forces of NATO member states," added Marinov.
New manufacturing capability to secure European production of electronic fuzes
Fuchs Electronics Europe will be established between CSG and South Africa's Reunert. Through this investment, CSG will become one of the few European manufacturers of electronic fuzes. The establishment of Fuchs Electronics Europe is subject to customary regulatory and closing conditions.
Production will take place at the ZVS holding's site in Dubnica and Váhom in Slovakia, where it will leverage CSG's existing industrial infrastructure. The new business will operate as an independent manufacturer of electronic fuzes and will supply them not only to CSG, but also to other European producers of large-calibre ammunition.
The business' technology partner is Fuchs Electronics, which is part Reunert. Fuchs Electronics is a globally respected manufacturer of electronic fuzes with more than 60 years of experience in this field. It brings core technology, development know-how and experience in the production of modern fuzes for international customers to the joint venture. CSG contributes its industrial base, manufacturing infrastructure, expertise in the European regulatory and licensing environment, and experience in the production and supply of large-calibre ammunition.
About Reunert and Fuchs Electronics
Founded in 1888, Reunert Limited ("Reunert") is a JSE-listed industrial group with a portfolio of high-quality assets across the Electrical Engineering, ICT and Applied Electronics Segments. The Group's strategic growth initiatives, strong cash generation and disciplined capital allocation continue to support a robust balance sheet and long-term earnings trajectory. For more information, visit www.reunert.co.za or www.reunert.com.
Fuchs Electronics Proprietary Limited ("Fuchs Electronics"), a company in the Reunert Applied Electronics Segment, was founded in 1963 to enhance South African defence electronics production focused largely on exports of electronic fuzes into the European, Middle Eastern, Indian and South-East Asian regions. As an equipment designer and manufacturer, Fuchs Electronics is a trusted supply chain partner to international original equipment manufacturers and end-customers, providing quality electronic fuze products. Fuchs Electronics' products are suited to harsh operational conditions and usable on various international platforms.
About CSG
CSG N.V. ("CSG") is a Dutch company and a leading European defence industrial group, with its top management headquartered in Prague, Czech Republic. CSG develops and delivers defence and industrial technologies that contribute to a safer and more stable future. The Group focuses on the development and manufacturing of strategically important products, systems and technologies in the fields of defence and ammunition, as well as in related sectors such as aerospace. CSG operates key manufacturing facilities in the United States, the United Kingdom, Spain, Italy, Germany, the Czech Republic, Slovakia, Serbia and India, and exports its products worldwide. The Group continues to invest in the growth of its portfolio companies and the expansion of its core business activities. Key companies within the Group include Excalibur Army (Czech Republic, land systems), Tatra Trucks (Czech Republic, vehicles), MSM Group (Slovakia, artillery ammunition) and The Kinetic Group (United States, small-calibre ammunition). CSG employs more than 14,000 people across its integrated and affiliated companies. In 2025, the Group reported annual revenues of EUR 6.7 billion. CSG shares are traded on Euronext Amsterdam under the ticker CSG. More information is available at: www.csg.com.
