Czechoslovak Group (CSG) has agreed to acquire the IFF nitrocellulose plant in Germany along with an industrial park as part of its expansion in defence chemicals. The transaction is expected to close in the first half of 2025.

The 1.7 km2 industrial park, located near Walsrode, has a long history and is home to several companies in the chemical and other sectors. The acquisition will give CSG control over the nitrocellulose production and the industrial park itself, which includes facilities such as a railway siding and a cogeneration plant. More than 350 employees work in the acquired parts of the Walsrode industrial park.

Nitrocellulose is the basic raw material for the production of explosives and gunpowder. CSG is facing a global shortage of these substances. Under the IFF, nitrocellulose production was exclusively for civilian use, but CSG intends to expand production to include energetic nitrocellulose suitable for munitions production. This will require further investment of several billion CZK and consultation with the relevant regulatory authorities.

CSG's profits have surged as defence budgets around the world have increased following the Russian invasion of Ukraine in 2022. The group continues to expand and is also set to acquire US ammunition maker Kinetic from Vista Outdoor's portfolio for US$2.2 billion.