CSG group will expand its industrial presence in Azerbaijan through a second joint venture
A new joint venture focused on the localisation of self-propelled howitzer production is to be established during 2026 and start production in 2027. Over a seven-year period, the project represents a business opportunity worth EUR 1.8 billion.
On the occasion of the international ADEX defence exhibition in Baku, CSG group announced its intention to establish its second joint venture in Azerbaijan. The new company, created with a local partner, will focus on the gradual localisation of self-propelled howitzer production and the related transfer of CSG technologies and production know-how to Azerbaijan.
According to the current schedule, the joint venture is to be established in December 2026, while the start of production is planned for 2027. According to the current medium-term plan, the project represents a business opportunity worth EUR 1.8 billion over the next seven years. With regard to the agreed confidentiality arrangements, CSG is not disclosing the specific types of self-propelled howitzers, the planned production volumes or the identity of the local partner.
The new project follows the long-term development of CSG’s industrial activities in Azerbaijan and the first joint venture, VEXA DS, LLC, whose establishment the group announced in April 2026. VEXA DS focuses on the repair, servicing and modernisation of armoured vehicles and other land military equipment in Azerbaijan. The programme of this joint venture includes hundreds of pieces of equipment with a total value in the hundreds of millions of euros and an expected duration of ten years or more.
Azerbaijan is one of the markets where CSG is systematically building a long-term industrial presence combining production, servicing, modernisation and technology transfer. The planned second joint venture further develops this strategy: instead of a model based only on the export of finished products, CSG will combine its own technologies and know-how with gradually developed local production capacities and a long-term industrial partnership.
“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. The project, with business potential of EUR 1.8 billion over the next seven years, represents a significant long-term opportunity for CSG. At the same time, our model is not based only on the export of finished products, but on a combination of our own technologies, local production, know-how transfer and long-term industrial partnership,” said Jan Marinov, CEO of the CSG Defence Systems division.
The localisation of production will take place gradually in several phases. CSG will bring its technological and production know-how in the field of land artillery systems to the project and will participate in the gradual development of production capacities directly in Azerbaijan. This model 2 / 3
enables CSG to build a long-term industrial presence in strategic foreign markets and, at the same time, to provide partners with access to the technologies and capabilities needed for the development of their own defence industry. The planned joint venture is part of CSG’s broader strategy based on long-term industrial partnerships, technology transfer and the development of local production and servicing capacities in strategic foreign markets.
The ADEX trade fair also serves as an opportunity to showcase products from companies within the CSG group. Exhibitors in Baku include Tatra Export (representing the vehicle manufacturer Tatra Trucks), as well as Excalibur International, Excalibur Army, MSM Group, and AviaNera Technologies. Representatives from Tatra Export are presenting the full portfolio of Tatra vehicles to potential customers – specifically the Force and Tactic model series designed for armed forces. Excalibur International is showcasing the Tadeas 6×6 armored vehicle, built on a Tatra chassis, and the Viking multifunctional mobile combat system designed to destroy targets such as UAVs, aircraft, helicopters, guided missiles, bombs, and precision-guided munitions at low or extremely low altitudes, as well as land and naval targets. Also on display are the ReGuard compact mobile 3D radar for air defense systems capable of detecting and tracking drones with a small radar cross-section and the CM-70 Spear – an advanced, cost-effective C-UAS guided interceptor designed to destroy UAVs.
Excalibur Army is presenting the modern Morana 155mm gun-howitzer in Baku; this system utilizes a highly mobile Tatra chassis and complies with all NATO standards for artillery systems and ammunition. AviaNera Technologies is exhibiting the MTF4000 series engine, designed for modern defense platforms such as cruise missiles, target drones, and anti-ship missiles. In Baku, the MSM Group is showcasing 155mm and 122mm artillery ammunition, as well as various types of 120mm and 105mm tank ammunition – standards for modern NATO main battle tanks and artillery systems. Also on display are 122mm unguided rockets for Grad-type launchers, medium-caliber 30×165mm ammunition, and mortar rounds in 60mm, 81mm, and 120mm calibers.
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