The US Army has approved up to $4.2 billion in spending on ammunition replenishment, but CSG is only one of several companies competing for contracts under the initiative.

Over the past six months, as the demands of the Iran war have severely depleted munitions stockpiles, the US Army has launched a herculean effort to rebuild them. As part of that effort, it recently selected Czechoslovak Group A.S. (CSG), a major defense conglomerate based in the modern-day Czech Republic, as one of the service’s qualified contractors eligible to compete for future ammunition plant modernization projects.

CSG’s US-based subsidiary, MSM North America, announced on Friday that it had secured a US Army framework contract, meaning it can compete and bid to be considered for the US Army’s five-year rearmament program. This program offers a combined ceiling of around $4.2 billion to upgrade domestic manufacturing technologies, to develop new industrial infrastructure, and to expand the production capabilities of the country’s ammunition industrial base.

Months earlier, in July, the company broke ground at the Future Artillery Complex at the Iowa Army Ammunition Plant, after it won a contract valued at up to $635 million in August 2025. The facility is scheduled to be fully operational by 2029, and it will produce the widely-used 155mm artillery ammunition.

The project will also include completely replacing the current World War II-era M795 artillery production line, which, despite numerous upgrades, was nearing the end of its operational life, with a new modern Government-Owned, Contractor-Operated (GOCO) facility that can be scaled to meet both surge-level wartime demands and lower minimum sustaining rates.

How CSG Is Entering the US Ammunition Market

The US subsidiary of the Czech-based firm is now one of the eligible contractors for the Multiple Award Task Order Contract (MATOC) aimed at modernizing seven GOCO ammunition facilities. CSG has established itself as a leading European manufacturer of medium- and large-caliber ammunition, and its business divisions already have developed extensive manufacturing and technological capabilities across the ammunition sector, from producing the energetic materials, propellants, and other components, to the final assembly of each round.

“CSG has extensive experience in ammunition manufacturing as well as in developing and modernizing industrial production capabilities,” said Jan Marinov, CEO of CSG’s Defence Systems Division.

“Thanks to our high degree of vertical integration, we possess expertise across the entire production chain, from energetic materials to finished products,” Marinov said. “Our ability to combine manufacturing experience, technological expertise, and the execution of complex industrial investment projects represents a significant competitive advantage. MSM North America’s selection for this program demonstrates our ability to apply these capabilities in the highly demanding US defense market.”

MSM North America was first established in 2024, allowing the Czech firm to compete for contracts in the lucrative American ammunition industry, while also seeking to forge a long-term relationship with the US military. The US subsidiary is headquartered in St. Petersburg, Florida.

The selection to compete for part of the $4.2 billion contract, which will be awarded through subsequent competitions, fulfills CSG’s ambitions.

“Being selected as one of the contractors under this program represents an important step in our long-term efforts to become a trusted partner of the US Army in modernizing its ammunition industrial base,” said Jason Gaines, CEO of MSM North America.

Gaines added that the company will build on its experience with the Future Artillery Complex project, where it has demonstrated an ability to manage a complex industrial project in close cooperation with the US Army and its technology partners.

“With our experienced team and the technical capabilities of CSG behind us, we are well positioned to compete for additional projects that will help strengthen and modernize U.S. ammunition production capacity,” said Gaines.

What Is a “MATOC” Program?

A MATOC is a specific type of federal “indefinite-delivery, indefinite-quantity” (IDIQ) contract in which an agency awards a master contract to a pre-qualified pool of multiple contractors rather than just one. This creates a group of reliable, vetted contractors—which become the MATOC “pool,” allowing smaller contracts to be issued to those firms with less of a hassle as specific projects, construction needs, or services arise over a multi-year period. This allows projects to be launched in weeks instead of months, which can reduce administrative red tape and contracting delays.

This particular MATOC program will directly support the priorities that were outlined in the National Defense Strategy—notably its fourth pillar, “Supercharge the US Defense Industrial Base.” The program covers several US Army manufacturing facilities that make up America’s ammunition industrial base by specializing in specific stages of ammunition production.

Those facilities include, or included:

• The Holston Army Ammunition Plant, Kingsport, Tennessee—specializing in the production of military explosives;
• The Radford Army Ammunition Plant, Radford, Virginia—a major producer of propellants and other energetic materials;
• The Lake City Army Ammunition Plant, Independence, Missouri—a significant production center for small-caliber ammunition;
• The Iowa Army Ammunition Plant, Middletown, Iowa—specializing in the loading and assembly of medium- and large-caliber ammunition;
• The Scranton Army Ammunition Plant, Scranton, Pennsylvania—manufacturing metal components for artillery ammunition;
• The Quad City Cartridge Case Facility, Rock Island, Illinois—focused on the production of large-caliber cartridge cases; and
• The Milan Army Ammunition Plant, Milan, Tennessee–a former facility that was shuttered last year, with the land transferred to the city.

The modernization efforts are to ensure that production capacity can be increased, along with efficiency, safety, and technological capabilities. According to the Army, the individual projects will be completed based on “evolving requirements.”

About the Author: Peter Suciu

Peter Suciu regularly writes about military hardware, firearms history, cybersecurity, politics, and international affairs. He has contributed to dozens of newspapers, magazines, and websites over a 30-year career in journalism, including Forbes and Clearance Jobs. He is based in Michigan. You can follow him on Twitter: @PeterSuciu. You can email the author at Editor@nationalinterest.org.

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