CSG and HDS Form Joint Venture to Revive Greek Ammunition Production in Lavrio

Event summary

  • CSG and Hellenic Defence Systems (HDS) signed key documents to establish Hellenic Ammunition S.A., a joint venture for large-calibre ammunition production in Lavrio, Greece.
  • CSG will control the Lavrio site for 25 years, investing up to €50 million in modernisation and expansion.
  • The facility will initially produce 155 mm ammunition, with plans to introduce additional calibres and base bleed grain technology by the end of 2026.
  • Employment at the site is expected to grow from 120 to 300 by the end of the year, with TNT production scheduled to begin in late 2026 or early 2027.

The big picture

The joint venture aligns with broader efforts to strengthen Europe's defense industrial base amid geopolitical tensions. CSG's investment in Lavrio reflects a strategic push to restore critical production capacities and reduce reliance on external suppliers. The project's success could position Greece as a key player in ammunition manufacturing, while CSG's vertical integration moves aim to enhance its competitive edge in the defense sector.

What we're watching

Execution Risk
Whether CSG can deliver on its ambitious production and hiring targets within the stated timelines.
Market Dynamics
How the revival of ammunition production in Lavrio will impact Greece's position in Europe's defense supply chain.
Technological Milestones
The pace at which the joint venture introduces new calibres and base bleed grain technology.