Czech ammunition maker CSG acquires industrial site in Germany

Aug 4 (Reuters) - Czech-based ammunition and arms producer CSG has bought the Gnaschwitz industrial site in the German state of Saxony and plans to invest more than €100 million ($115 million) in its initial development phase, it said on Tuesday.

The site is intended for the production of nitroglycerin and nitroglycerin-based products, while also developing ammunition and ammunition component manufacturing.

"The European defence industry needs not only greater ammunition production capacity, but also reliable supplies of strategic energetic materials without which ammunition cannot be manufactured," CSG Defence Systems CEO Jan Marinov said in a statement.

• The site was acquired from Spanish explosives maker MAXAM for an undisclosed sum.

• Following the completion of planned projects, the site is expected to create up to 125 new jobs.

• The deal marks yet another acquisition for CSG in Germany, as it expands its industrial footprint in the country.

($1 = 0.8692 euros)

(Reporting by Aleksandra Kret in Gdansk, editing by Milla Nissi-Prussak)