CSG Acquires Gnaschwitz Site from Maxam and Plans to Invest Over €100 Million in Saxony
Industrial and technology group CSG has completed the acquisition of an energetic materials production facility at Gnaschwitz, in Saxony, from MAXAM. The transaction expands its German operations and aims at producing nitroglycerin as well as ammunition and ammunition components.
Acquisition of Gnaschwitz Site and Investment Envelope Exceeding 100 Million Euros
CSG announced on August 4, 2026, through its German subsidiary CSG Energetic Materials Germany GmbH, that it has completed the acquisition of the industrial site at Gnaschwitz, near Bautzen, in Saxony. The land, spanning 57 hectares, was purchased from MAXAM. The transaction price was not disclosed.
As part of the site's first development phase, the group plans to invest more than 100 million euros. CSG intends to establish nitroglycerin production capacity and derived products there, while simultaneously developing ammunition manufacturing and ammunition components.
According to the group, this acquisition expands its industrial footprint in Germany and constitutes a further step in its strategy to build a vertically integrated European value chain for energetic materials and ammunition. The transaction extends the acquisition of the MSM Walsrode site at Bomlitz, where CSG is currently developing its industrial nitrocellulose production to include energetic nitrocellulose intended for ammunition manufacturing.
"The European defense industry needs not only greater ammunition production capacity, but also a reliable supply of strategic energetic materials without which ammunition cannot be manufactured," said Jan Marinov, Chief Executive Officer of CSG Defence Systems. He added that the acquisition of Gnaschwitz is a continuation of Walsrode activities and strengthens the group's vertical integration, supply security, and the resilience of the European defense industrial base.
Nitroglycerin Production and Up to 125 Jobs Expected
The Gnaschwitz site is to accommodate nitroglycerin production capacity and other derived products. These materials are used in the manufacture of double and triple-base propellants, employed as propulsive charges for small, medium, and large caliber ammunition.
The project is expected to generate synergies within the group, particularly between the CSG Medium & Large Calibre and Ammo+ divisions, and strengthen the group's autonomy in strategic energetic materials. The production of nitroglycerin and associated products will serve both CSG group companies and external customers.
The initial development phase also includes the preparation for ammunition and ammunition component manufacturing, a segment where demand is rising in Germany and Europe. Once the planned projects are completed, the site could create up to 125 new jobs.
According to the group, the existing infrastructure offers expansion possibilities beyond the planned investments, particularly for medium caliber ammunition assembly, tank ammunition and 120 mm mortar ammunition, as well as for ammunition component production.
A Second German Investment Following Walsrode
The acquisition of Gnaschwitz follows the purchase of the MSM Walsrode plant at Bomlitz, in Lower Saxony. The group signed the purchase agreement with American company International Flavors & Fragrances (IFF) in October 2024 and finalized the transaction in May 2025.
At Walsrode, CSG is investing in the expansion of industrial nitrocellulose production in order to integrate energetic nitrocellulose for ammunition manufacturing. Together, the Gnaschwitz and MSM Walsrode sites will form the cornerstone of the group's German platform dedicated to energetic materials.
According to CSG, these two facilities will strengthen its supply security in strategic energetic materials, reduce its dependence on external suppliers, and support the development of its vertically integrated value chain, from energetic materials and ammunition components to finished ammunition. The Gnaschwitz site, whose industrial history dates back to 1874, extends more than 150 years of energetic materials production at this location.
