Strategic acquisitions are happening at the supply-chain level

A recent example is the acquisition of a German nitrocellulose plant by MSM Group, part of Czech-Slovak conglomerate CSG. Nitrocellulose is a key propellant ingredient for ammunition, and Europe has faced shortages of it. In a deal completed in May 2025, MSM took over the Walsrode Nitrocellulose plant in Bomlitz, Germany – which was previously owned by a chemicals firm and made mostly industrial-grade product. CSG’s plan is to invest and gradually convert this facility to produce “energetic nitrocellulose” for ammunition, while still maintaining its civilian output. The strategic importance was highlighted by CSG’s defence chief: Europe must “not fall into dependence on imports for such a strategic commodity”, especially given high energy prices and potential supply cut-offs. This deal effectively vertically integrates CSG’s ammo supply chain – the group has been investing hundreds of millions to establish a full-spectrum ammunition production capacity (from raw materials to finished rounds) within Europe. Analysts view this as part of Europe’s “war economy” efforts: companies, often with tacit government backing, are acquiring or expanding factories for fuels, explosives, and other inputs to ramp up munitions output for NATO needs. Another case is Rheinmetall’s ongoing efforts to secure powder and primer supplies, including joint ventures in propellants. Such transactions are “extraordinary” in that they involve cross-border takeover of strategic industrial sites that previously might not have been on the market. They underscore how urgent the ammo shortfall has become – so urgent that private defence firms are stepping in to buy and repurpose civilian chemical plants for military production. The outcome should be greater self-sufficiency: by next year or two, Europe will have at least one additional domestic source of propellant thanks to this MSM-CSG deal, which could prove crucial for sustaining artillery supplies to Ukraine and for European stockpiles.