Czech arms companies invest CZK 55 billion in US, supporting 5,000 jobs

Acquisitions, ammunition production and drone engines are expanding Czech defense companies’ footprint across a dozen American states.

Expats.cz Staff

Written by Expats.cz Staff Published on 16.10.2026 07:14:00 (updated on 16.10.2026) Reading time: 2 minutes

Czech defense companies have invested approximately $2.62 billion, or CZK 55 billion, in the United States and employ more than 5,000 people across 12 states, according to Defense Minister Jaromír Zůna.

Speaking at the Czech-American Defense and Security Forum during a working visit to the United States, Zůna highlighted the growing role of Czech businesses in American weapons manufacturing, ammunition production and aerospace technology.

His visit also included talks at the Pentagon and appearances at the AUSA defense exhibition in Washington, where Czechoslovak Group (CSG) and Colt CZ Group presented their products, the Czech Defense Ministry reported.

Ammunition and firearms drive investment

CSG accounts for the largest share of the investment cited by the minister. The group has invested approximately $2.1 billion in the United States and employs more than 4,000 people there.

Its American expansion includes the 2022 acquisition of Italian ammunition manufacturer Fiocchi, which operates two US factories, and the takeover of American ammunition producer The Kinetic Group two years later.

More recently, the US Army awarded CSG subsidiary MSM North America a $635 million contract, approximately CZK 13.3 billion, to design, build and commission an artillery ammunition production complex in Iowa.

Colt CZ Group also has a substantial American presence following its acquisition of the historic firearms manufacturer Colt in 2021. The group employs approximately 700 people in the United States.

Beyond firearms and ammunition, Czech manufacturer PBS Velká Bíteš operates a factory in Georgia producing jet engines for drones, cruise missiles and other unmanned systems. The facility opened in September last year.

Zůna identified ammunition, unmanned systems and propulsion technology as the areas with the greatest potential for further cooperation. He also pointed to electronic warfare, technologies with both civilian and military applications, and protection against weapons of mass destruction.

Pentagon talks focus on defense ties

At the Pentagon, Zůna met US Under Secretary of Defense for Policy Elbridge Colby, who praised Czech companies’ contribution to the American defense industry, according to the ministry’s account of the meeting.

Their discussions covered Czech military modernization, defense spending and the American “NATO 3.0” concept, under which European allies would assume greater responsibility for conventional defense.

Zůna also briefed Colby on Czechia’s proposed defense budget for next year, which allocates CZK 191 billion.

At the AUSA exhibition, CSG appeared with its own stand for the first time and displayed a Tatra Force military truck outdoors. Colt CZ Group also participated.

The minister visited American manufacturers’ exhibits, including Bell Textron, which produces the UH-1Y Venom and AH-1Z Viper helicopters operated by the Czech military.

Did you like this article?

Czechia’s latest news

Read all the headlines
Want to see more from us? Select Expats.cz as a preferred source on Google.