Czech Firm Wins $636 Million Contract to Build New 155mm Ammunition Line at Iowa Army Plant

On 15 August, MSM Group North America Inc., a subsidiary of the Czechoslovak Group (CSG) holding, secured a $636.2 million contract from the U.S. Army Contracting Command in Rock Island, Illinois, to design and construct a new production line for 155mm artillery ammunition at the Iowa Army Ammunition Plant (IAAP) in Middletown.

The contract, formally registered as W519TC-25-C-0032, includes provisions for adjustments based on economic conditions. Notably, MSM Group was the sole electronic bidder for the project, underscoring the specialized expertise required to expand U.S. ammunition manufacturing capabilities.

The new line will cover the entire process of projectile manufacture, shell loading, and final packaging, ensuring a modernized and expanded capacity for the plant. According to the agreement, the work is expected to be completed by 10 August 2029.

The IAAP, a government-owned, contractor-operated facility currently run by American Ordnance LLC, is already a cornerstone of the U.S. munitions base. It produces a wide array of critical armaments, including 155mm artillery shells, 120mm tank rounds, 60mm, 81mm, and 120mm mortar rounds, as well as warheads for TOW-2, Hellfire, Javelin, Stinger, and Sidewinder missiles. The plant also manufactures hand grenades, engineering charges, ceremonial ammunition, and test munitions.

This new investment reflects Washington’s broader push to dramatically ramp up ammunition production in response to global security challenges and heightened demand from U.S. allies. The 155mm artillery round, in particular, has become one of the most sought-after munitions given its central role in modern conflict, especially highlighted by ongoing NATO support for Ukraine.

The U.S. Department of Defense has already announced ambitious plans to increase monthly output of 155mm shells several-fold by 2025, investing billions in modernizing production lines and collaborating with both domestic and allied defense industries. The decision to bring in MSM Group, part of a European holding with a strong track record in ammunition manufacturing, illustrates the deepening industrial cooperation between the U.S. and its NATO partners.

With completion slated for 2029, the new line at IAAP is set to significantly expand America’s long-term artillery supply capacity, ensuring sustained readiness for the U.S. Army and its allies.