CSG, a global industrial and technology group, has secured a U.S. Army framework contract through its U.S.-based subsidiary MSM North America, becoming one of the selected contractors eligible to compete for projects to modernize U.S. Army ammunition production facilities. The five-year program, with a combined ceiling of approximately $4.2 billion, focuses on upgrading manufacturing technologies, developing new industrial infrastructure, and expanding the production capabilities of the U.S. ammunition industrial base. MSM North America's selection builds on its successful execution of the Future Artillery Complex project in Iowa, awarded to the company in 2025.
The framework contract forms part of a U.S. Army program focused on the design, construction, and commissioning of ammunition plants owned by the government and operated by private companies (Government-Owned, Contractor-Operated – GOCO). The program uses a Multiple Award Task Order Contract (MATOC) structure and is administered by Army Contracting Command – Rock Island. Its objective is to modernize the U.S. Army's industrial infrastructure through cooperation with selected industry partners.
Under the MATOC framework, the U.S. Army selects a group of qualified contractors that are subsequently eligible to compete for individual task orders. These may include the design and construction of new manufacturing facilities, modernization of existing production lines, implementation of advanced technologies, automation, and commissioning of new production capabilities. The program also encompasses activities related to the operation and maintenance of industrial infrastructure.
The program's total ceiling of approximately $4.2 billion applies collectively to all selected contractors. Individual projects will be awarded separately through subsequent competitions. Selection under the framework therefore does not guarantee a specific volume of business but enables MSM North America to compete for contracts over the next five years.
"Being selected as one of the contractors under this program represents an important step in our long-term efforts to become a trusted partner of the U.S. Army in modernizing its ammunition industrial base. We are building on our experience with the Future Artillery Complex project, where we have demonstrated our ability to manage a complex industrial project in close cooperation with the U.S. Army and our technology partners. With our experienced team and the technical capabilities of CSG behind us, we are well positioned to compete for additional projects that will help strengthen and modernize U.S. ammunition production capacity," said Jason Gaines, CEO of MSM North America.
"CSG has extensive experience in ammunition manufacturing as well as in developing and modernizing industrial production capabilities. Thanks to our high degree of vertical integration, we possess expertise across the entire production chain, from energetic materials to finished products. Our ability to combine manufacturing experience, technological expertise, and the execution of complex industrial investment projects represents a significant competitive advantage. MSM North America's selection for this program demonstrates our ability to apply these capabilities in the highly demanding U.S. defense market," said Jan Marinov, CEO of CSG Defence Systems Division.
Modernization of Seven U.S. Army Ammunition Facilities
The MATOC program directly supports the priorities outlined in the U.S. National Defense Strategy, particularly its fourth pillar, “Supercharge the U.S. Defense Industrial Base.” This strategic priority emphasizes rebuilding America's ability to produce, replenish, and sustain the weapons and equipment needed for prolonged, high-intensity conflict. By modernizing ammunition production facilities and expanding domestic manufacturing capabilities, the MATOC program is designed to contribute directly to these objectives.
The MATOC program covers seven U.S. Army manufacturing facilities that form an important part of the country's ammunition industrial base. These facilities specialize in different stages of ammunition production, ranging from energetic materials and propellants to metallic components and the assembly of finished ammunition.
The facilities covered by the program include Holston Army Ammunition Plant in Tennessee, which specializes in military explosives, and Radford Army Ammunition Plant in Virginia, a major producer of propellants and other energetic materials. Lake City Army Ammunition Plant in Missouri is a key production center for small-caliber ammunition.
Iowa Army Ammunition Plant specializes in the loading and assembly of medium- and large-caliber ammunition. Scranton Army Ammunition Plant in Pennsylvania manufactures metal components for artillery ammunition, while the Quad City Cartridge Case Facility in Illinois focuses on the production of large-caliber cartridge cases. The program also includes Milan Army Ammunition Plant in Tennessee.
Modernization of these facilities is intended to increase production capacity, efficiency, safety, and technological capabilities across the U.S. ammunition industrial base. Individual projects will be competed based on the U.S. Army's evolving requirements.
Building on the Future Artillery Complex Project
MSM North America's selection for the MATOC program builds on its established cooperation with the U.S. Army. In August 2025, the company secured a contract worth up to $635 million to design, construct, and commission the Future Artillery Complex (FAC) at Iowa Army Ammunition Plant.
The project represents one of the U.S. Army's major investments in modernizing large-caliber ammunition production. Construction of the new facility began in 2026. Once completed, the plant will be capable of loading up to 36,000 rounds of 155 mm artillery ammunition per month. The facility is expected to become operational in 2029.
MSM North America serves as the project's prime contractor and systems integrator, responsible for the design, construction, and commissioning of the new manufacturing complex. The company is working in close cooperation with the U.S. Army, U.S. industrial partners, and specialists from CSG's European ammunition businesses.
According to MSM North America, the FAC project remains on schedule and within budget. Experience gained through its execution provides an important reference for the company's participation in future U.S. Army modernization projects. MSM North America intends to leverage substantially the same project team, management approach, and technical expertise under the MATOC framework.
Bringing CSG's European Expertise to the U.S. Defense Industry
CSG is among Europe's leading manufacturers of medium- and large-caliber ammunition. Its companies possess extensive manufacturing and technological capabilities covering significant parts of the ammunition production value chain, from energetic materials, propellants, and ammunition components to the assembly of finished ammunition.
The group's high degree of vertical integration enables CSG to maintain control over critical manufacturing processes, develop proprietary technological solutions, and reduce dependence on external suppliers. These capabilities are applied not only to ammunition production but also to the design, modernization, and expansion of ammunition manufacturing facilities.
MSM North America was established in 2024 to develop CSG's presence in the U.S. ammunition industry and become a long-term partner of the U.S. Armed Forces. Headquartered in St. Petersburg, Florida, the company is led by Jason Gaines, an experienced executive with more than 20 years of experience in the U.S. defense industry.
Securing a place under the MATOC framework marks another milestone in MSM North America's development and supports CSG's long-term strategy to strengthen its presence in the United States.
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