CSG Group has announced plans to establish its second joint venture in Azerbaijan to gradually localise production of self-propelled howitzers and transfer related technologies and production know-how to the country. The announcement was made during the ADEX international defence exhibition in Baku. The joint venture is expected to be established in December 2026, with production scheduled to begin in 2027. CSG estimates the project could represent a business opportunity of approximately €1.8 billion over the next seven years.
The company has not disclosed the specific self-propelled howitzer models, planned production volumes or the identity of its local partner, citing confidentiality agreements. The planned venture follows CSG’s expansion of its industrial activities in Azerbaijan and comes after the establishment of VEXA DS, LLC, the group’s first joint venture in the country. Announced in April 2026, VEXA DS focuses on the repair, servicing and modernisation of armoured vehicles and other land military equipment. Its programme covers hundreds of vehicles and equipment with a total value of several hundred million euros and an expected duration of at least 10 years.
Jan Marinov, CEO of the CSG Defence Systems division, said, “The signing of agreements leading to the establishment of our second joint venture in Azerbaijan confirms that we are building a long-term industrial presence here. After servicing and modernisation of land military equipment, we are now expanding our cooperation to include the localisation of production.” He added that the project would combine CSG technologies, local production, transfer of know-how and a long-term industrial partnership rather than relying only on exports of finished defence products.
Production localisation will be implemented in several stages. CSG will provide technological and production expertise in land artillery systems and support the development of manufacturing capabilities in Azerbaijan. The company said the approach is intended to establish local production and servicing capacity while providing partners with access to defence technologies and industrial capabilities.
CSG’s participation at ADEX also includes products from several group companies. Tatra Export is presenting Tatra Trucks’ Force and Tactic vehicle ranges for armed forces. Excalibur International is displaying the Tadeas 6×6 armoured vehicle and the Viking multifunctional mobile combat system. The group is also showcasing the ReGuard compact mobile 3D radar for air defence applications and the CM-70 Spear counter-UAS interceptor.
Excalibur Army is exhibiting the Morana 155mm self-propelled gun-howitzer, based on a Tatra chassis and designed to meet NATO standards for artillery systems and ammunition. AviaNera Technologies is displaying the MTF4000 engine series for defence platforms including cruise missiles, target drones and anti-ship missiles.
MSM Group is presenting 155mm and 122mm artillery ammunition, 120mm and 105mm tank ammunition, 122mm unguided rockets, 30x165mm medium-calibre ammunition and 60mm, 81mm and 120mm mortar rounds. The second Azerbaijan joint venture forms part of CSG’s broader strategy of developing industrial partnerships, technology transfer and local production and maintenance capabilities in strategic international markets.
