CSG Signs Latvian Artillery Contract and Unveils Second Azerbaijani Joint Venture

CSG signed a Latvian artillery contract worth hundreds of millions of euros and announced a second Azerbaijan joint venture with EUR 1.8 billion potential.

CSG has signed the contract documentation for a Latvian armed forces modernization project valued in the hundreds of millions of euros, while simultaneously announcing the creation of a second joint venture in Azerbaijan at the ADEX industry fair in Baku. Both initiatives center on the manufacture and expansion of modern artillery systems.

The Latvian procurement program is built around the self-propelled MORANA artillery system in the NATO-standard 155-millimeter caliber, mounted on a TATRA FORCE 8×8 chassis. Riga has already approved the purchase, which covers multiple rocket launchers in addition to the howitzers. Group subsidiary TATRA DEFENCE SYSTEMS serves as prime contractor, with financing to be channeled through the European SAFE instrument.

Industrial execution draws on partners from several countries. Slovak firms including Z?S ŠPECIÁL will supply the weapon system, superstructures and fire-control technology, while partial manufacturing and final assembly are slated to take place directly in Latvia. Latvian industry partners are also expected to assume maintenance and lifecycle support over the longer term. By standardizing on a single vehicle platform, the armed forces aim for tangible simplifications in logistics, servicing and training.

Azerbaijani Localization Carries €1.8 Billion Potential

Parallel to the Baltic contract, CSG is widening its industrial footprint in the Caspian region. Management presented plans for a second joint venture in Azerbaijan at the Baku fair. Formal incorporation is scheduled for this coming December, with production expected to begin the following year. According to the company, the agreement to progressively localize howitzer manufacturing opens up a business potential of EUR 1.8 billion over a seven-year period.

The move deepens the group's industrial anchoring in the region and follows the VEXA DS joint venture agreed in April of this year, which focuses on the repair, maintenance and modernization of armored vehicles. Through the transfer of manufacturing know-how, the group continues to strengthen its international supply chain.

Business Practices Under Scrutiny

On Tuesday, Balkan Insight reported on a regulatory review of CSG's business practices and political connections, including open questions surrounding the company's Slovak framework agreements. CSG rejected the allegations and explicitly denied any link between a group project in the United Arab Emirates and subsequent defense contracts in Slovakia.

New Industrial Order in Germany

On Friday, Mostostal Zabrze Realizacje Przemys?owe, a subsidiary of Mostostal Zabrze, reportedly signed a contract with CSG-group company MSM Walsrode. The agreement covers the construction of a chemical plant in Germany, with media reports citing the first quarter of 2028 as the timeline for full completion of the industrial installation.

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