CSG acquires stake in Hungarian defense company

The Czech engineering and defense group Czechoslovak Group (CSG) is entering the Hungarian defense industry. The company is acquiring a 49 percent stake in the Hungarian company 4iG Space & Defense Technologies.

Through this stake, CSG also indirectly acquires a share of around 37 percent in Rába Automotive Holding. Among other things, the company plans to produce and deliver several thousand military vehicles for the Hungarian armed forces. In addition, CSG could be involved in the Hungarian Himars program in the future, the company announced.

Expansion of defense production

CSG owner and CEO Michal Strnad sees the cooperation as an opportunity to expand the region's industrial base.

"In combination with Rába's industrial tradition and the strategic support of the 4iG Group, we can significantly increase the production capacity, technological expertise, and export potential of the Hungarian and European defense industry," Strnad explained.

The cooperation also includes an export program for Rába worth around one billion euros, which provides for medium tactical vehicles for international markets.

Prospects for Himars systems

Hungary is currently considering the purchase of Himars missile systems from the US. According to CSG, these could be mounted on the company's Tatra chassis in the future, which would be integrated at Rába.

CSG speaks of a "significant opportunity" to deepen transatlantic industrial cooperation and expand participation in international supply chains.

For the Hungarian 4iG Group, the cooperation marks an important step in the expansion of the national defense industry.

"The agreements announced today are the biggest step yet in our defense industry strategy," said 4iG CEO Gellért Jászai. The goal is to make defense technologies developed and produced in Hungary exportable internationally.

Rapid rise of CSG

CSG is now one of the fastest-growing defense companies in Europe. When it went public on the Euronext in Amsterdam in January, the company achieved a market capitalization of around €32 billion, making it the most valuable company in Czechia.

Bloomberg estimates the assets of company boss Michal Strnad at around $37 billion. This makes him one of the richest entrepreneurs under 40 worldwide.

Political and economic ties

The cooperation brings the Czech and Hungarian defense industries closer together. Hungary already has a stake in the Czech aircraft manufacturer Aero Vodochody.

However, critics have for years seen the Hungarian technology group 4iG as having close ties to the government of Prime Minister Viktor Orbán. Investigative journalists and independent media describe the company as heavily influenced by state support.

This article was produced in cooperation with our partner bne intelliNews.