CSG Inks Latvian Artillery Deal Worth Hundreds of Millions as Tatra Defence Takes Lead

CSG subsidiary Tatra Defence Systems signs Latvian military modernisation contract for Morana howitzers, with financing via the SAFE instrument.

CSG has locked in a major Baltic defence contract, with its subsidiary Tatra Defence Systems named prime contractor on a Latvian military modernisation programme carrying a volume in the hundreds of millions of euros. The contract papers were signed on Wednesday, cementing the group's push into heavy land systems in the region.

At the heart of the agreement sit self-propelled Morana howitzers in the NATO-standard 155 mm calibre, paired with multiple rocket launcher systems. The guns will ride on the Tatra Force 8×8 chassis. Riga had already given the procurement of the Morana systems its formal blessing before the signing.

Financing for the project is set to flow through SAFE, the European funding instrument, while Tatra Defence Systems handles operational leadership of the programme as general contractor.

Cross-Border Production Network Takes Shape

Delivery will rest on a division of labour spread across several European industrial partners. Czech and Slovak plants are supplying core system components, with Slovak partners contributing the 155 mm weapon system, the vehicle superstructures and the associated fire-control technology.

Under the same arrangement, manufacturing work will gradually migrate to Latvia. Portions of production and final assembly of selected components are to be located on Latvian soil, and local firms are slated to take a fixed role in maintenance and ongoing lifecycle support for the weapon systems — a move designed to build lasting in-country sustainment capacity.

The stock responded positively to the news, though the two sessions' trading told slightly different stories: shares closed Wednesday up 2.5% at EUR 15.13, after an earlier reading showed a 2.1% gain to EUR 15.07. Either way, the equity remains 58% below its 52-week high of EUR 36.05.

Scrutiny in Slovakia, New Work in Germany

The Latvian win lands against a more complicated backdrop. Balkan Insight reported on Tuesday that authorities are examining CSG's business practices and political ties, with the coverage raising open questions about the company's Slovak framework agreements. CSG has rejected the allegations, explicitly denying any link between a group project in the United Arab Emirates and subsequent defence contracts in Slovakia.

Separately, Mostostal Zabrze Realizacje Przemys?owe — a unit of Mostostal Zabrze — has reportedly signed a contract with CSG-group company MSM Walsrode to build a chemical plant in Germany. Media reports put full completion of the industrial installation in the first quarter of 2028.

Even with the share price still far off its peak, the Latvian order gives the defence group's backlog in heavy land systems a durable boost.