The Czech arms industry is experiencing an unprecedented boom. Driven by the ongoing Russian aggression in Ukraine and the rising demand from European armies, domestic manufacturers are reporting record exports and full order books.
The Czech arms sector is currently undergoing a previously unmatched phase of growth. Last year, manufacturers of military goods exported products worth 94 billion crowns – almost twice as much as the year before, reports news channel ČT24. The main driving forces behind this development are Russia’s continuing war against Ukraine and the increased demand from armed forces in Europe and beyond.
One example is the ammunition manufacturer Sellier & Bellot, based in Vlašim. The company made a profit of 1.7 billion crowns in 2024 – around half a billion more than in the previous year. The long-established company, which has been producing ammunition for civilian markets and armed forces for over 200 years, is currently experiencing historically high demand.
The Czech army itself is increasing its orders and has even signed so-called mobilisation contracts with the company. These come into effect in a crisis situation to ensure that the supply of its own troops takes priority.
In addition to ammunition, demand for military vehicle technology is also rising. The largest Czech arms group, Czechoslovak Group, is currently investing one billion crowns in new production halls in Šternberk and Kopřivnice. Hundreds of new jobs are expected to be created.
The growing demand for arms is reflected in figures from the Ministry of Defence: in 2022 contracts worth 53 billion crowns were signed, in 2023 more than double that amount, and in 2024 the volume reached almost 244 billion crowns. Exact delivery quantities from Czech production are not disclosed.
However, despite the boom, the industry is increasingly reaching its limits. Problems in the supply chain – such as shortages of gunpowder – as well as a lack of production space, machinery, and skilled workers are slowing further expansion. Since 2022, arms exports have been growing rapidly: from 34 billion crowns in the year of the Russian invasion, to 50 billion in 2023, and 94 billion last year. More than half of the deliveries go to European countries outside the EU, a third to EU member states.
