CSG Acquires Nitrocellulose Production in Germany from IFF
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CSG Acquires Nitrocellulose Production in Germany from IFF

MSM GROUP, the Slovak subsidiary of the CSG industrial group, has entered into a purchase agreement with the U.S. publicly traded IFF to acquire IFF’s nitrocellulose business, associated plant, and Walsrode Industrial Park in Lower Saxony, Germany.

MSM GROUP, the Slovak subsidiary of the CSG industrial group, has entered into a purchase agreement with the U.S. publicly traded IFF to acquire IFF’s nitrocellulose business, associated plant, and Walsrode Industrial Park in Lower Saxony, Germany.

The 1.7 square-kilometre industrial park is located near Walsrode and has a long tradition in the chemical industry. It is home to several companies from the chemical industry and other fields. As part of the acquisition, CSG is taking over the production of nitrocellulose and the industrial park itself, which has, for example, its own railway siding and cogeneration power plant.Under IFF, the business has manufactured nitrocellulose strictly for industrial purposes, serving customers primarily in coatings and printing inks. More than 350 employees work in the parts of WalsrodeIndustrial Parkacquired by CSG.

CSG values the industrial production capabilities and will leverage that capability to also include energetic nitrocellulose production, consistent with its other businesses, over time.This will necessitate further investment in the facilities and consultation with appropriate regulatory authorities.

Jan Marinov, CEO of the CSG Defence Division, says: “Chemical production, including, at times, a prior historyofproducingforthe defense industry, has taken place in the Walsrode Industrial Park. Even in the current situation, when the chemical industry in Europe is facing high energy prices and demanding regulation, the production of nitrocellulose for the ammunition industry and other important industries, such as printinginks and coatings,can ensure a long-term prospect for companies operating in this field. Energetic nitrocellulose production is strategically important for the security of NATO and EU countries and their allies. Europe must not fall into dependence on imports for such a strategic commodity, as it is necessary to have security of supply even in a crisis.”

After the contractual documentation between IFF and MSM Group was signed at the beginning of October, processes are underway leading to the transaction’s closing, which is expected to take place in the first half of 2025, subject to applicable information and/or consultation requirements and customary closing conditions, including regulatory approvals. 

Jan Marinov, owner and CEO of the CSG Group, says: “The security threat for NATO countries and their allies is the insufficient European capacity to produce ammunition, especially large-caliber. That is why we have been working hard for several years and investing hundreds of millions of euros in creating a vertically integrated production of large-caliber ammunition within the CSG Group, from input commodities and semi-finished products to the final product. Our recent acquisition has brought us significantly closer to this goal.At the same time, thanks to it, we are becoming a manufacturer and employer in Germany, an important EU country that is a key economic partner of the Czech Republic.”