(MENAFN) Michal Strnad, the owner and chairman of Czech defense manufacturer Czechoslovak Group (CSG), has reportedly amassed substantial wealth as a result of the ongoing Russia-Ukraine conflict, according to a report by Bloomberg. The company has experienced a significant surge in revenues, with profits nearly doubling in 2022 to approximately $1 billion and nearly doubling again in the following year, reaching USD1.9 billion.
CSG's success can be attributed in part to its subsidiary, Excalibur Army, which has played a pivotal role in bolstering profits by engaging in the production of munitions and the refurbishment of Soviet-made weaponry. Notably, amidst the conflict, CSG supplied around 100 refurbished T-72 main battle tanks to Ukraine, further contributing to its revenue growth.
The escalation of hostilities between Russia and Ukraine in early 2022 prompted a substantial increase in demand for ammunition, resulting in CSG's production of ammunition growing more than tenfold. To meet this heightened demand, the company expanded its workforce, nearly tripling its staff to 10,000 across manufacturing sites spanning eight countries.
Looking ahead, Strnad anticipates continued profitability for CSG, citing sustained demand for weapons in Europe even in the event of an end to the conflict. He emphasizes the long-term effects of the conflict, suggesting that it will take years to replenish depleted stocks and expects a sustained push to bolster defense spending and production.
Strnad's remarks underscore the complex dynamics of the arms industry amidst geopolitical tensions, highlighting the lucrative opportunities that arise in times of conflict. While the Ukraine conflict has brought immense profits to CSG, it also raises broader ethical questions about the role of arms manufacturers in perpetuating and profiting from armed conflicts.
MENAFN17042024000045015687ID1108105090
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.