Ukraine Forges Its Own Firepower: Domestic Production of Western Tank Ammunition Marks Pivotal Shift

 01. 11. 2025      Category: Defense & Security

In a significant strategic development that underscores Ukraine's remarkable resilience and burgeoning defense industrial capacity, the nation has officially launched mass production of 120-mm ammunition for its growing fleet of modern western tanks, including the formidable Abrams and Leopard 2. This monumental step, spearheaded by the Ukrainian Armor company, not only addresses critical supply chain needs but also signals a profound shift towards greater self-sufficiency in the face of ongoing conflict.

120-mm-HE-T-G201
Picture: The HE-T G201 120mm tank shell | CSG

The initiative, detailed by Ukrainian Armor is a direct result of an innovative partnership with the Czechoslovak Group (CSG). This collaboration saw CSG transfer crucial technological documentation, not only enabling the production of sophisticated 120-mm tank rounds but also facilitating the mass production of NATO-standard artillery ammunition.

A Symbiotic Partnership: Technology Transfer and Component Supply

At the heart of this success lies a carefully orchestrated arrangement between the Ukrainian industrial giant and its Czech partner. CSG, a leading European defense and industrial technology holding company, has been instrumental in providing the foundational knowledge. As David Chour, Deputy Chairman of CSG’s Board of Directors, proudly stated, "We are proud to be one of the first Western companies to successfully relocate large-caliber ammunition production to Ukraine."

While CSG's contribution is pivotal, their business model in this venture is distinctly non-intrusive. The company does not own any plants or production technology within Ukraine; all operational control and manufacturing assets remain firmly in the hands of its partner, Ukrainian Armor. CSG's role is primarily that of a technology enabler and a critical component supplier, providing essential elements such as powder charges, detonators, and initiators. "Our group does not determine the pricing policy or the choice of customers. We benefit from the project through license fees and the supply of critical components," CSG clarified, emphasizing a mutually beneficial, yet strategically independent, partnership for Ukraine.

Ukrainian Armor: The Engine of Domestic Production

On the ground, Ukrainian Armor is the operational powerhouse. The company is responsible for the entire manufacturing lifecycle of the ammunition, from producing the vital casings on site to the intricate processes of filling, finalizing, and rigorously testing each shell. This comprehensive approach ensures quality and reliability, crucial for the demanding conditions of modern warfare.

The immediate production targets are ambitious yet achievable. In the initial year of cooperation, Ukrainian Armor plans to roll out up to 100,000 155 mm artillery shells and 50,000 105 mm shells. The capacity for these vital munitions is planned to double in the future, demonstrating a clear trajectory of growth. 

For the newly launched 120-mm tank shells, developed by CSG specifically for the smoothbore guns of Leopard 2 and M1 Abrams tanks (like the Rheinmetall L/44/L/55), Ukrainian Armor is capable of producing an impressive 4,800 rounds per month. This consistent supply is critical for sustaining the operational readiness of Ukraine's Western-supplied armored divisions.

Localization and Self-Sufficiency: A Strategic Imperative

A cornerstone of this initiative is the aggressive push towards greater localization. At the initial stage, Ukrainian Armor will localize approximately half of its production. The strategic goal, however, is to dramatically increase this share to 80% of all ammunition, effectively embedding the entire production chain within Ukraine. This includes a parallel plan to gradually transfer the production of detonator components to Ukrainian soil, further cementing the nation's independence in defense manufacturing.

This drive for localization is not merely about cost-efficiency; it is a strategic imperative for wartime resilience. By reducing reliance on external supply chains for critical components, Ukraine mitigates risks associated with logistics, geopolitical shifts, and potential disruptions, ensuring a more stable and secure supply of ammunition for its armed forces.

A Comprehensive Approach to Defense

Notably, this expansion into Western-standard ammunition does not signal an abandonment of legacy systems. Ukrainian Armor simultaneously continues its production of Soviet-era 152 mm and 122 mm caliber ammunition, acknowledging the diverse arsenal still in use by its forces. This dual-track approach ensures that all operational needs are met, regardless of the origin of the equipment.

The launch of domestic 120-mm tank ammunition production marks a defining moment for Ukraine. It is a testament to the nation's unwavering determination, its ability to rapidly adapt and innovate under extreme pressure, and the power of international collaboration in supporting a sovereign nation's defense. This new capability not only strengthens Ukraine's immediate war effort but also lays a vital foundation for a robust and self-reliant defense industry for years to come.

 Author: Joe Taylor