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The conflict in Ukraine shows that NATO countries, especially its European members, have long underestimated the supply of critical material such as ammunition and equipment. In the words of German Chancellor Olaf Scholz, Germany only has enough ammunition to last two days of intense conflict. A serious question mark is therefore hovering over our defence capability.

Photo: STV GROUP as the only manufacturer of large calibre ammunition in the Czech Republic supplies not only our army | STV GROUP

The problem with the reduction of the capacity of the European defence industry, especially in the production of munitions, arose after the fall of the Iron Curtain. In the euphoria of the end of the Cold War, many states deliberately resigned themselves to maintaining defence industry capacity, hand in hand with the reduction of defence budgets. Western and Central European states thus focused more on the development of expensive precision munitions and reoriented their armies towards expeditionary corps, which are and have been deployed in the hotbeds of conflicts in the Middle East or Africa, where they faced terrorist organisations or local guerrillas waging asymmetric warfare against them with obsolete assets. It is for these situations that precision munitions are ideal - they eliminate unnecessary destruction of civilian infrastructure and do not endanger civilians like conventional munitions. An example of the use of precision munitions was the elimination of the leader of the Islamist terrorist group Al-Qaeda, Ayman Zawahiri, with a Hellfire missile with a sharp-edged blade that exerts kinetic energy rather than an explosion.

However, Ukraine shows that the threat of a high-intensity conventional war is not over, and even with the most advanced weapons systems, a high-intensity conflict cannot be waged for a long time. Moreover, the Russian Federation is using reckless tactics (not only) against the civilian population, whereby it is purposely destroying critical civilian infrastructure, but also against its own soldiers and conscripts, whom it is sending into combat with the almost second-war tactic of allowing massive human and material casualties.

The same trend, i.e. the targeted abandonment of the once extensive capabilities and production capacity of the defence industry, has befallen the Czech Republic. Since the 1990s, there has been a forced or, in some cases, voluntary resignation from the production of munitions and weapons systems. It was the defence industry that had always been the showcase of our economy, with munitions companies such as Explosia or manufacturers of tracked combat vehicles, tanks or small arms arming almost half of the Warsaw Pact states and 'friendly' socialist satellites without exaggeration. However, these huge capacities were in many cases abandoned, production lines were sold for the price of scrap iron and the most valuable thing - the know-how and experience of expert employees - was forgotten.

However, the situation is changing and the Ministry of Defence has been pushing suppliers to locate production in the Czech Republic in recent years. This applies both to the purchase of weapon systems from abroad and to the purchase of ammunition. This is a pragmatic policy. Without its own production base, it is not possible to repair combat equipment or ensure a stable supply of ammunition to conduct combat operations. If Article 5 of the Washington Treaty is triggered, there is no reliance on foreign supplies. This applies both to complete systems and to the ammunition for them, since foreign industry will, quite logically, mainly support its own armies and armed forces on the basis of political orders. Self-sufficiency in the provision of necessary repairs or supplies of ammunition, small arms or equipment is therefore crucial to the operation of the army, even in states of national security threat or war.

Let's take for example large-caliber ammunition, which is the number one priority for the Ukrainian armed forces, when the tactics of the conflict against Russia clearly show that without its massive deployment it is impossible to keep the war machine running. The only manufacturer of ammunition for tank equipment or cannons in the territory of the Czech Republic is STV GROUP, with its main production plant in Polička. Historically, this plant was founded as a state enterprise in 1920 to meet the needs of the newly established army of Czechoslovakia, when there were no ammunition plants on our territory. After privatization and a series of changes of owners, in 2016 the company came into the hands of the arms company STV GROUP, which after decades of decay began to bring life back to the extensive premises. After extensive investments, the STV GROUP company now produces not only artillery and tank ammunition and plastic explosives, but also RPG-7 armored personnel carriers or the Križná tactical long-range mining system, which is unique in NATO, on the premises. In addition, the sister company STV Technology started the production of small caliber ammunition. The entire group now employs over 700 employees and is constantly recruiting new workers of all skills.

“The conflict shows how essential it is to have domestic munitions production capacity. By that I mean real production and not, for example, just assembly and laboratory work from imported components. This is the only way to talk about self-sufficiency and therefore a higher defense capability of the country. The manufacturer must have its own development and testing facilities. Production must be sustainable and competitive on a global scale. STV decided to go the route of its own products, which in case of export do not block the license restrictions of the holder of the original license. Which is difficult to achieve in the already mentioned cases of mere laboratory testing of foreign components only for the needs of the Czech Army.But even we are not yet fully independent. Ammunition manufacturing consists of mechanical components and energetic materials. While we can respond flexibly to demand for mechanical components, we are still dependent on supplies from other companies for energy components. The geographically closest subcontractor, the state-owned company EXPLOSIA, is unfortunately unable to respond flexibly to increased demand. We therefore proposed several options to the government to solve this situation. For example, we could invest capital in the company or just rent unused technology. We would bring in capital and experienced people so that production would multiply. However, we are also working in parallel to create our own production capacities, should the situation with EXPLOSIA not be improved," David Hác, chairman of the board of STV GROUP, told CZ DEFENSE.

However, STV does not only fulfill contracts for our army, which after years of budget cuts does not have sufficient stockpiles. A large part of the production is also exported. According to the company, economically sustainable production would not be possible without export and its support from the state level. In order not to lose experience, specific types of ammunition must be produced either continuously, or at most within a period of two to three years. Otherwise, the production ability and experience of munitions workers is lost.

"We still have a long way to go, but I think we are on a good trajectory to become a European player in the market in a few years. We are investing massively in expanding and improving the quality of our production so that, together with the Army of the Czech Republic, we reach the level of Western NATO countries. It is about quality control and gaining the experience of our people, who are the most important value for ammunition production. But we have something to follow up on. The history of the Czech defense industry is rich and we have always been good at this industry. We want to focus on being as self-sufficient as possible in production and when we do buy something, so that it is from Czech suppliers. We want to return the original shine to the Czech defense industry. We are currently preparing for deliveries of 155mm artillery ammunition according to NATO standards for the new French Caesar guns. We are also preparing for the production of 120mm ammunition for the considered Leopard tanks or medium-caliber 30mm ammunition for the new infantry fighting vehicles," added David Hác.

Support for the defense industry also has its national economic dimension. Every crown that is invested in local production will be reflected in the economy roughly 3-5 times. In addition, domestic production also has a positive tax benefit, when profits, wages and added value are taxed in the Czech Republic and therefore contribute to the state budget. Although the defense industry sector is relatively small compared to other sectors, it remains prestigious for any country and, as the conflict in Ukraine has shown, also essential to maintaining the country's defense capabilities. The well-known slogan applies: those who want peace must arm themselves. Therefore, supporting the defense industry and its development makes sense.

Source: armyrecognition.com, defensenews.com

Author: Michal Pivoňka

Taken from: CZDEFENCE.CZ