The Slovak company MSM GROUP, part of the industrial holding company Czechoslovak Group (CSG), has completed the acquisition of the Walsrode industrial park in Bomlitz, Germany, including the production plant for Walsroder nitrocellulose. This strategic move represents a significant investment in the stability of supply for nitrocellulose, a key material for defence and other strategic sectors.
The nitrocellulose production plant and the industrial park have recently become part of the MSM GROUP. The seller is IFF, a global leader in flavors, fragrances, food ingredients, health, and biosciences. Under IFF, the plant manufactured nitrocellulose strictly for industrial purposes, serving customers primarily in the areas of coatings and printing inks. CSG values the Walsrode plant’s industrial customers and its capabilities, which it will leverage to additionally enable energetic nitrocellulose production, in line with CSG’s other businesses, over time. This will require further investment and expansion in these facilities and approvals by appropriate regulatory authorities.
Jan Marinov, CEO of the CSG Defence Division, says: “Chemical production, including, at times, production for the purposes of the defence industry, has already taken place at the Walsrode Industrial Park. In the current situation as well, 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 printing inks and coatings, can ensure long-term prospects 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.”
Strategic importance for Europe
In the context of current geopolitical developments, the security of supply of strategic raw materials for the defence sector is more important than ever. The lack of production capacity in Europe for large-caliber ammunition and components such as nitrocellulose is one of the most significant security risks for NATO and its allies.
CSG and MSM GROUP have invested heavily in recent years to expand production capacity for ammunition, artillery systems, and related technologies. The acquisition of this plant in Germany is part of a broader strategy to create vertically integrated ammunition production, from raw material to finished product.
Jan Marinov states: “The insufficient European capacity to produce ammunition, especially large-caliber ammunition, is a security threat for NATO countries and their allies. This is why we have been working hard for several years and investing hundreds of millions of euros in establishing vertically integrated production of large-caliber ammunition within CSG, from input commodities and semi-finished products to the final product. This acquisition has brought us significantly closer to our goal. Meanwhile 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.”
A top location for companies across various industries
This acquisition includes the Walsrode industrial park. It offers ideal conditions with first-class infrastructure and a strong network of established companies and is among the most renowned and important sites for cellulose chemistry in the world. It offers outstanding opportunities for plastics-processing companies and manufacturers working with renewable raw materials.
It also offers excellent conditions for engineering services, mechanical engineering, and food-processing companies. This industrial park is fully developed, with comprehensive infrastructure and established material and utility flows. It covers a total area of 87.5 hectares, of which approximately 11 hectares are currently available—fully developed and ready for immediate use.
The steps that will follow the acquisition
The acquisition agreement was signed on October 4, 2024 and completed on May 2, 2025. As part of the acquisition, all existing liabilities will be assumed by the acquiring company, MSM GROUP. The divested part of IFF will be acquired with the aim of making it fully independent based on its own operating principles. This step will require the reorganization of several functional areas that were previously managed through a global matrix structure. All current managers will remain in their respective roles.
Existing supply chains and customer relationships in the industrial nitrocellulose business remain unchanged and will continue. “After the closing of the transaction, we need to stabilize the support functions and integrate the business into MSM GROUP. This means completing the implementation of the new ERP system, rebuilding key support functions by hiring new employees and implementing management processes according to the requirements of MSM GROUP,” Marinov added.
In connection with the change of ownership, the IFF trademarks and logos will cease to be used, and the acquired companies will become an integral part of CSG and MSM GROUP. The nitrocellulose products will continue using the Walsroder brand.
