CSG announced its intention to establish its second joint venture in Azerbaijan during the ADEX 2026 defence exhibition in Baku this week.
Although details of specific models and even the identity of the local partner have not yet been disclosed, the company did reveal that the initial focus will be on technology transfer and gradual localisation to support manufacture of self-propelled howitzers in Azerbaijan, adding that the project represents a business opportunity valued at €1.8 billion over seven years. The JV is expected to be established by year-end. CSG’s first in-country jv – VEXA DS, LLC – was established in April this year and is engaged in the modernisation, maintenance and repair of hundreds of vehicles and items of military equipment over the next decade or more. “The signing of agreements leading to the establishment of our second joint venture in Azerbaijan confirms that we are building a long-term industrial presence here […] The project […] represents a significant long-term opportunity for CSG. At the same time, our model is not based only on the export of finished products, but on a combination of our own technologies, local production, know-how transfer and long-term industrial partnership,” explained Jan Marinov, CEO of the CSG Defence Systems division.
Although no specifics have yet been confirmed, observers at the show were convinced that the subject of the localisation programme is likely to be the Excalibur Army Morana 155mm howitzer, which was being exhibited at ADEX. Based on conversations held during the show, it is thought that production in Azerbaijan could commence as early as 2027.
Main image shows the Morana 155mm SPH, which may or may not be the subject of the announced joint venture. (CSG/Excalibur Army)
