Czechoslovak Group intends to establish second joint venture in Azerbaijan

The CSG group of companies (Czechoslovak Group) has announced its intention to establish a second joint venture in Azerbaijan.

The new venture, set up with a local partner, will focus on the gradual localization of self-propelled howitzer production and the corresponding transfer of CSG’s technology and manufacturing know-how to Azerbaijan. The joint venture is expected to be established in December 2026, with production scheduled to begin in 2027. According to the medium-term plan, the project represents a business opportunity worth 1.8 billion euros over the next seven years. CSG is not disclosing the specific types of self-propelled howitzers or the planned production volumes, citing an agreed confidentiality regime.

The first joint venture was established in April 2026, when CSG announced the creation of VEXA DS LLC between its Azerbaijani subsidiary, Excalibur Army Azerbaijan LLC, and a local partner.

The company is engaged in the repair, maintenance and modernization of armored vehicles and other military equipment in Azerbaijan. The program covers hundreds of units of equipment with a total value of hundreds of millions of euros and is designed for the long term, 10 years or more. A key element of the project is the transfer of CSG’s technology and know-how in military equipment modernization.