Slovakia Transforms into NATO Ammunition Hub
Slovak defense product exports have surged by 2,200% in four years to reach €2.4 billion. According to Bloomberg, the country is transforming from an automotive powerhouse into a key ammunition producer for NATO and the EU.
From Automakers to Ammunition
Slovakia, long known as a European powerhouse in automobile manufacturing, is undergoing a significant industrial transformation. According to an extensive analysis by Bloomberg on March 26, 2026, the country is becoming one of the most important ammunition hubs for NATO in Europe. Exports of military products from Slovakia have increased by 2,200% in the last four years, reaching a value of €2.4 billion.
At the center of this transformation is ZVS Holding, a semi-state-owned enterprise based in Snina in eastern Slovakia. Half of the company is owned by the state-owned DMD Holding, and the other half by the Czech industrial group CSG, owned by billionaire Michal Strnad. According to data from the Stockholm International Peace Research Institute (SIPRI), CSG recorded the largest percentage increase in revenue from arms sales among the world's top 100 defense companies in 2024.
New Production Capacities in the East
In October 2024, ZVS Holding opened a new production line in Snina for 155-millimeter artillery shells with a planned capacity of 360,000 units per year. The investment amounted to €31.5 million. Before the war in Ukraine, Slovakia produced only around 30,000 shells per year — today it is hundreds of thousands.
Another milestone is the cooperation with the French state-owned company EURENCO. On March 4, 2026, the two companies signed a memorandum of understanding to build a joint venture in Strážske, where a factory will be established for the production of Modular Artillery Charge Systems (MACS) for NATO artillery systems. The investment represents approximately €300 million, will create over 300 jobs, and production is expected to begin in 2028.
Defense Minister Robert Kaliňák announced that the government will seek strategic investment status to accelerate the start of production. According to experts, the lack of modular charges is one of the main bottlenecks in increasing the production of artillery ammunition in Europe.
Framework Agreement for €58 Billion
In December 2025, ZVS Holding concluded a seven-year framework agreement with the Slovak Ministry of Defense for the supply of medium and large-caliber ammunition to EU member states, worth up to €58 billion. The agreement covers 155mm artillery, 120mm tank, and 30mm and 35mm cannon shells. Purchases are to be financed through the SAFE (Supporting Ammunition and Framework for European defence) program, which allows member states to draw loans with an interest rate of 1% and a maturity of up to 40 years.
Slovakia plans to draw €2.3 billion from the SAFE program, of which €38.5 million will be used to purchase ammunition for its own armed forces.
Strategic Shift in Position
Bloomberg estimates that the revenues of the Slovak defense sector could reach up to €7.6 billion in 2026, following a 72 percent increase in the previous year. For eastern Slovakia, historically affected by unemployment, the development of the arms industry means hundreds of skilled jobs.
The situation also has a political dimension. Prime Minister Robert Fico is known for his skeptical attitude towards military aid to Ukraine, but it is precisely the demand triggered by the war that is driving the growth of the Slovak defense industry. Slovakia thus finds itself in a paradoxical position — profiting from a security situation from which its government rhetorically distances itself.
