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One of the world’s leading small-arms manufacturers, Colt CZ, is expanding its production in Hungary. The Czech company set up a joint venture with the Hungarian government in the summer of 2023, writes Világgazdaság.
A month ago the newest military factory in Hungary, manufacturing ammunition in Várpalota (western Hungary), was inaugurated. Now Colt CZ group has announced that it will expand its small arms production at its existing Hungarian site.
Colt CZ is a prestigious company in the arms industry. It is one of the world’s leading manufacturers of firearms, tactical accessories and ammunition
Photo: LinkedIn/Colt CZ Group
In addition, it continues to expand its portfolio: in early 2024, it acquired ownership of the Mk 47 Striker (40mm automatic grenade launcher) from General Dynamics Ordnance and Tactical Systems.
Colt CZ is based in the Czech Republic. It employs more than 3,600 people in the Czech Republic, the United States, Canada, Sweden, Switzerland and Hungary, all of which have manufacturing plants. The company has been listed on the Prague Stock Exchange since 2020.
Colt CZ has a majority stake in its Hungarian subsidiary Colt CZ Hungary Zrt. and will fully manage the production process itself.
This will now be significantly enhanced by the construction of a new firearms production plant in Kiskunfélegyháza (southern Hungary), which will provide additional production capacity. Exactly how much and for what products was not specified, but it was pointed out that there is a growing demand for CZ’s commercial, military and law enforcement products worldwide, which the new factory in Hungary will partly try to meet. It was also stressed that the construction of the factory will be supervised by Colt CZ experts.
CZ Scorpion EVO 3. Photo: Honvedelem.hu/Mészáros Szonja főtörzsőrmester
The new plant will incorporate state-of-the-art manufacturing processes, including robotics, fully automated turning and milling centers, and advanced surface treatment equipment.
The Colt CZ Group and the Hungarian government entered into a technology transfer partnership back in 2018. Then, at the end of 2022, it was announced that an agreement had been reached to set up a joint venture for the production of small arms. This became Colt CZ Hungary Zrt., registered in the summer of 2023.
The focus of the partnership between the parties is twofold. On the one hand, to equip the Hungarian Defense Forces with CZ firearms and, on the other hand, to produce handguns for global export from Hungary.
Világgazdaság contacted the Ministry of Defense in connection with the development. In its reply, the Ministry confirmed that the Hungarian government’s aim is that the Hungarian defense industry should not only meet the equipment needs of the Hungarian Defense Forces, but also contribute to strengthening the national economy by producing for international markets. The announcement, they said, is an expansion of existing capacities.
The strategic objective of the small arms manufacturing in Kiskunfélegyháza is to create a full vertical small arms manufacturing capability in Hungary, with the highest possible added Hungarian value.
It was recalled that the joint venture (Colt CZ Hungary Zrt.), established on June 1, 2023, will operate from the weapons manufacturing plant established at the premises of Arzenál Fegyvergyár Zrt., using its existing manufacturing capacities and knowledge base.
Via Világgazdaság; Featured image via Honvedelem.hu/Mészáros Szonja főtörzsőrmester
