Listed South African IT and engineering company expanding into Europe to produce ammunition components
JSE-listed Reunert has concluded an agreement with CSG to establish a European electronic fuze manufacturing capability for large-calibre ammunition in Slovakia.
The business will be named Fuchs Electronics Europe and will be owned 51% by Reunert and 49% by CSG, formerly known as Czechoslovak Group.
Reunert said the establishment of the business remained subject to customary regulatory and closing conditions, including foreign investment screening and competition authority approvals.
It must also receive defence-sector and exchange control approvals before the transaction can be completed and the business can begin operating.
“Fuchs Electronics, a wholly-owned proudly South African subsidiary of Reunert, is a globally recognised design authority for electronic fuzes,” the company stated.
“It has more than 60 years of experience and technology that is operationally proven and fielded across multiple armed forces worldwide.”
The Slovak business is intended to create an independent, in-market supply capability for European customers, supported by Fuchs Electronics from South Africa.
“The business will operate as an agnostic supplier, not tied to any single ammunition
original equipment manufacturer or end-customer, supporting diversified demand and resilient
supply chains.”
The production facility will be located in Dubnica nad Váhom, Slovakia, and will use Fuchs Electronics’ technology and operating know-how alongside CSG’s manufacturing footprint.
Reunert said the partnership would combine CSG’s regulatory and licensing expertise, established supply chain, and customer access with South African fuze technology.
The company said the business was being established on a capital-efficient basis, supported by a binding launch order during its three-year ramp-up period.
Reunert expects the business to become self-sufficient within about three years from the start of operations and achieve attractive margins.
The company said the investment would expand its access to the European artillery market as defence ministries modernise and rebuild artillery stockpiles.
Supplying electronic fuzes to Europe
“The investment significantly enhances CSG’s large calibre ammunition portfolio. Electronic fuzes are technologically sophisticated and strategically important components,” said Jan Marinov, CEO of CSG Defence.
“The combination of Fuchs’ world-class technology with our manufacturing and distribution capability will increase CSG’s competitiveness and reinforces our role as a reliable partner to European customers.”
Reunert believes Fuchs Electronics Europe will provide European customers with a credible and reliable source of advanced electronic artillery fuzes.
Simultaneously, it said it would reinforce the role of independent technology partners in Europe’s evolving defence ecosystem.
“Importantly, this creates a strategic growth opportunity for Reunert by significantly expanding its access to the European artillery market,” the company stated.
Trevor Raman, CEO of Reunert’s Applied Electronics Segment, said the business would create a European manufacturing base for electronic artillery fuzes.
“Combining our technological know-how with CSG’s industrial capability creates a strong European manufacturing base for electronic artillery fuzes,” Raman said.
He added that the capability would be aligned with applicable NATO qualification requirements for the European defence market.
Raman said the investment would allow Reunert to respond more effectively to growing demand for modern artillery ammunition.
He said it would also contribute to strengthening Europe’s industrial defence capacity as countries rebuild ammunition supply chains.
Loading ...