Czech holding Motor Jikov to switch to artillery ammunition due to crisis in the automotive industry
The Czech machine-building holding Motor Jikov Group plans to enter the defence industry and focus on the production of artillery shells.
Here's What We Know
The holding, which consists of four companies and has been operating in the automotive industry for decades, has faced a deep crisis in the industry, which used to account for up to 70% of its business. The reasons for the decline were the effects of the pandemic, rising energy prices, the shift to electric vehicles, and new trade restrictions, including export taxation by the United States.
In response to these challenges, Motor Jikov's management decided to change the direction of its operations and has already conducted a test production of cast iron artillery shells.
According to Miroslav Dvořák, CEO of the holding, the company can produce up to 100,000 such shells per year and is already in talks with two key players in the Czech defence industry, STV Group and Czechoslovak Group.
Illustrative image of artillery shells. Illustration: US Department of Defence
This transition coincides with the active expansion of the capacities of the ammunition manufacturers themselves. In particular, STV Group plans to launch a new production line in a few weeks, which will double the volume of production to 200,000 shells annually, and reach 300,000 by the end of 2026.
In short, STV Group currently produces several types of 155 mm shells: high-explosive STV107 HE, extended-range STV HE ER-BB and HE ER-HB, illumination STV ILL (LU 215), smoke STV SMOKE (LU 217) and training STV TP.
Source: Ekonom