Ukraine and Czech producer to build ammunition factory in Ukraine (updated)

Colt CZ SE

16/07/2024 15:30

(Adds comments from Shmyhal, Fiala, companies, details;
paragraphs 2-9)
       PRAGUE, July 16 (Reuters) - Ukraine's state company
Ukroboronservice and Czech ammunition maker Sellier & Bellot
plan to build an ammunition factory in Ukraine, Ukrainian Prime
Minister Denys Shmyhal said on Tuesday after joint government
meetings in Prague.
    The Czech Republic has been a major backer of Kyiv in its
fight to push back Russian invaders, spearheading an initiative
that has sourced hundreds of thousands of ammunition rounds from
around the world.
    "Among other agreements in the defenсe industry, a new
rounds factory will be built in Ukraine. The agreement was
signed between Sellier & Bellot and Ukroboronservice," Shmyhal
said, without providing further details.
    "This is important for army supplies now."
    Czech gunmaker Colt CZ Group  CZG.PR , which acquired
Sellier & Bellot this year, said it would provide machinery to
make small-calibre ammunition as part of the project.
    Another Colt CZ unit, Ceska Zbrojovka, also signed a
technology transfer deal for its CZ BREN 2 rifles to be built in
Ukraine, finalising earlier plans.
    Shmyhal said Ukraine had received the first 50,000
ammunition shells from the Czech initiative launched earlier
this year. Czech Prime Minister Petr Fiala said the ammunition
drive should continue into next year.
    Around half a million artillery shells are expected to be
delivered to Ukraine this year from the Czech drive, which uses
contributions from NATO states and allies to source ammunition
outside Europe.
        
  

 (Reporting by Yuliia Dysa and Jason Hovet;
Editing by Alison Williams)
 ((Yuliia.Dysa@thomsonreuters.com;))