March 4 (Reuters) - Slovak ammunition group ZVS Holding, part of fast-growing Czech defence firm CSG, will form a joint venture with France-based EURENCO to build a 300 million euro ($349 million) artillery propellant factory in Slovakia, the firms said on Wednesday.
The deal with EURENCO, a European leader in military explosives, is part of the drive to boost Europe's defence industry capabilities.
The plant will manufacture Modular Artillery Charge Systems (MACS), a component of artillery ammunition used by NATO members.
CSG completed the biggest defence sector stock offering on record in January as it seeks to grow and tap into a surge in military spending following Russia's 2022 invasion of Ukraine.
The Czech group, which holds 50% of ZVS while the Slovak state has the remaining share, said the availability of the charge systems that the new Slovak plant will produce was a limiting factor to increasing ammunition production in Europe.
The plant should be operational in 2028, CSG said, adding planned annual output would reach several hundred thousand modular propellant charge systems.
($1 = 0.8599 euros)
(Reporting by Jan Lopatka. Writing by Anna Wlodarczak-Semczuk. Editing by Mark Potter)
