Czechoslovak Group (CSG), one of Europe’s largest munitions producers, is looking to create joint ventures to invest hundreds of millions of euros in Ukraine to strengthen the country’s defense capabilities, CSG’s owner said on Wednesday, Reuters reported.

“The partnership will focus on munitions and heavy equipment, providing important technology and a way to increase production in the coming years, although it is not an immediate solution to Europe’s efforts to bring more artillery to Ukraine,” Michal Strnad told a group of reporters.

CSG became the main supplier to Ukraine after the full-scale invasion of Russia in 2022, supplying refurbished T-72 tanks along with ammunition, howitzers and other equipment.

Thanks to the supply of these heavy weapons, its business has grown, with revenues reaching €1 billion in 2022, the latest year available.

Strnad, 31, who managed to grow CSG after taking full ownership from his father in 2018, said the joint ventures would expand capacity for Ukraine’s state-owned defense companies.

“We have two or three projects under discussion for the JV,” he said at his headquarters in Prague.

“The deal will probably be done this year, but then two or three years (before production). If we have an agreement, we will transfer the technology for different calibers and different equipment.”