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Unexpected: Hungary to become the proud producer of NATO’s machine gun ammunition
The Hungarian defense industry has expanded dramatically in recent years. Now the Swiss-based, now Czech-owned company Saltech is set to start large-caliber ammunition production in Hungary.
The company’s production lines have already been shipped to Hungary, and manufacturing is expected to begin in 2025. According to the Tages-Anzeiger, NATO excluded Swiss suppliers from several tenders because they were unable to deliver on time.
Previously, Saltech produced large-caliber, military-grade cartridges in Switzerland, but strict export restrictions increasingly hindered international sales. For this reason, Saltech’s parent company, the Czech Colt CZ Group, decided to continue production of NATO-standard machine gun ammunition in Hungary. The exact location of the new facility has not yet been disclosed, but the investment could create hundreds of jobs and strengthen Hungary’s role in the regional arms and ammunition industry.
Why is Saltech coming to Hungary?
Switzerland is known for its strict arms export controls, making export permits difficult to obtain, especially for products that might end up in conflict zones. Consequently, several manufacturers have recently relocated production to Central and Eastern Europe, where regulations are more flexible, labor costs are lower, and logistics are more convenient.
Hungary is particularly active in this area: the state considers the defense sector strategic and has supported numerous foreign investors in recent years. Saltech’s decision is a result of this policy.
Key Hungarian defense industry companies
Over the past few years, Hungary has significantly developed its defense industry. From small arms and ammunition to armored vehicles and helicopter parts, domestic production now covers nearly every segment. The state-owned N7 Holding and its partners, including Rheinmetall, Airbus, and the Czech Colt CZ Group, are establishing an increasingly broad technological base.
Fun fact – and as I believe I mentioned when the Military Industrial Complex started looking into Hungarian manufacturing… My prediction was that our Politicians would fold regarding the export restrictions on weapons and munitions, at the sight of all that money. And here we are. “Peace!”.
Maybe this pragmatic “common sense” approach will score Hungary some brownie points with NATO and the EU – since Ukraine uses vast quantities of 12.7mm ammo. Supplied by … You guessed it!