Czech gunmaker Colt CZ agrees small arms factory venture with Hungary

Colt CZ SE

22/12/2022 14:19

PRAGUE, Dec 22 (Reuters) - Czech gunmaker Colt CZ Group
 CZG.PR  has agreed a joint venture with Hungarian state-owned
group N7 Holding aimed at starting a small arms factory in
Hungary to supply firearms to the country's army, Colt CZ said
on Thursday.
    Colt CZ will hold 51% of the venture, which is subject to
regulatory clearance expected at the turn of the first and
second quarters of 2023.
    "The established JV will operate a state-of-the-art facility
in which the Hungarian state invested over the past three
years," Colt CZ Chief Executive Jan Drahota said. 
    "Our common goal is to rearm the Hungarian Armed Forces with
modern small arms and to help Hungary build its own production
capacity in this field."
    The Hungarian side will provide the production facility.
    The deal follows a transfer of technology agreement signed
by Colt CZ and the Hungarian state in 2018 which gave Hungary
licenses for some products.
    The Czech company, previously known as CZG-Ceska Zbrojovka
Group, acquired the fabled U.S. brand Colt in 2021.
 (Reporting by Jason Hovet; Editing by Kirsten Donovan)
 ((jason.hovet@thomsonreuters.com;))