CSG Group has officially started construction of the Future Artillery Complex (FAC) at the Iowa Army Ammunition Plant (IAAAP), marking a major milestone in the U.S. Army’s effort to modernize its large-caliber ammunition manufacturing capabilities. The groundbreaking ceremony also strengthens CSG’s long-term investment strategy in the United States through its subsidiary, MSM North America.
Representatives from the U.S. Army, industry partners and CSG attended the ceremony, including CSG CEO and Chairman Michal Strnad. The project follows the U.S. Army’s 2025 award of a contract worth up to US$635 million to design, construct and commission the new production facility.
Modernizing U.S. 155mm Ammunition Production
The Future Artillery Complex will replace an aging production line that has supported the U.S. Army for more than 50 years. Once operational, the government-owned, contractor-operated (GOCO) facility will produce up to 36,000 loaded 155mm artillery projectiles each month.
The project forms part of the Army’s broader strategy to expand domestic ammunition manufacturing capacity while improving production efficiency, safety and long-term resilience. Engineers have designed the facility with advanced automation, scalable production systems and modern explosive loading technology.
Construction is expected to take approximately 40 months, while commissioning and First Article Acceptance Testing will conclude within 48 months of the contract award. The facility is scheduled to begin operations in 2029.
Industry Collaboration Accelerates Project Delivery
Project leaders highlighted the unusually rapid transition from contract award to groundbreaking.
“Breaking ground on the Future Artillery Complex is much more than the start of construction of a new production facility,” said Michal Strnad, CEO and Chairman of CSG.
“It demonstrates what can be achieved when the U.S. Army and industry work together with a shared commitment to strengthening allied defence capabilities. We are proud that MSM North America and CSG have become trusted partners in this strategically important program.”
Maj. Brian K. Schwartzkopf of the U.S. Army’s Joint Program Executive Office Armaments & Ammunition (JPEO A&A) said the facility supports both immediate operational needs and future military readiness.
“This facility, combined with other modernization efforts across the United States, helps us achieve the Army’s goal of producing 100,000 155mm rounds per month. It’s a critical part of securing that capability for the future.”
Schwartzkopf also noted the project’s accelerated schedule.
“The collaboration between the U.S. Army and MSM has allowed us to execute this project at a pace that’s rarely seen. We’re breaking ground in less than twelve months from contract award.”
Automation Focuses on Safety and Manufacturing Efficiency
MSM North America serves as the project’s prime contractor and system integrator, overseeing design, construction and implementation alongside the U.S. Army and a network of American industrial partners.
According to Jason W. Gaines, Chief Executive Officer of MSM North America, the facility incorporates automation where it delivers measurable operational benefits.
“We’re not introducing automation for the sake of automation,” Gaines said.
“We’re introducing it where it makes sense—improving safety, increasing efficiency, and delivering a consistent product.”
He added that the project establishes a new benchmark for future defense manufacturing programs.
“This team of Army, industry, and partners has set a new standard for how modernization projects are executed—from design through construction and commissioning.”
European Manufacturing Expertise Supports the Project
The Future Artillery Complex benefits from engineering support provided by specialists from CSG’s European ammunition facilities. The company brings decades of experience in medium- and large-caliber ammunition production, supported by vertically integrated manufacturing processes covering energetic materials, components and complete ammunition systems.
By the end of the first quarter of 2026, CSG’s annualized production capacity for large-caliber artillery and tank ammunition exceeded 800,000 rounds, with capacity expected to reach approximately 850,000 rounds annually during 2026.
This technical expertise supports facility design, production planning and implementation of advanced manufacturing processes intended to improve quality control and operational reliability.
Expanding CSG’s U.S. Defense Manufacturing Presence
The Iowa project represents a key element of CSG’s broader expansion across the United States. The company now employs more than 4,000 people nationwide, primarily through The Kinetic Group, a major U.S. manufacturer of small-caliber ammunition.
The Future Artillery Complex will create approximately 70 highly skilled jobs at the Iowa Army Ammunition Plant while expanding MSM North America’s workforce.
CSG has also established CSG Land Systems North America, representing Excalibur Army, Tatra Defence and Tatra Trucks in the U.S. market for artillery systems, tactical vehicles and other land platforms. Together, these operations strengthen the company’s manufacturing footprint and support the modernization of the U.S. defense industrial base.
Long-Term Impact on the U.S. Ammunition Industrial Base
The Future Artillery Complex represents more than a new manufacturing facility. It forms part of a wider effort to rebuild and modernize the United States’ ammunition production infrastructure using advanced construction methods, automation and long-term industrial planning.
Once operational, the facility will provide resilient domestic production capacity for 155mm artillery ammunition while supporting evolving defense requirements for the United States and its allies. The project also demonstrates how government agencies and private industry can accelerate delivery of complex industrial infrastructure through coordinated planning, engineering expertise and modern construction practices.
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