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Hospodářské noviny
Submachine guns and pistols in the value of a billion crowns are heading from Česká zbrojovka to an Arab
Nation
30.06.2011 Hospodářské noviny Page 13 Enterprises & Markets Petr Býma Česká zbrojovka
The company from Uherský Brod is on the verge of concluding a billion-crown contract; the company will be
supplying 20,000 items of weaponry to the Police Force of an Arab country.
Only confirmation of the final details remains prior to Česká zbrojovka Uherský Brod's obtaining of a gigantic
foreign contract. The company is about to sign a contract for the production of 20,000 pistols, submachine guns and
rifles with a total value of more than 1.2 billion crowns. The customer is the Police Force of one of the Arab nations.
This news is derived from information that Hospodářské noviny was able to obtain from weapon-making circles.
"I do not wish to say anything about this at the moment. I can only confirm that we are negotiating with an important
customer and that we are in the final stages of reaching agreement," Lubomír Kovařík, the General Director of
Česká zbrojovka stated to HN.
Based on this information from HN the items to be supplied should be primarily upgraded versions of pistols of the
CZ 75 series; these should be supplied in a total quantity of some ten thousand units. Of the total aggregate number
the remainder will probably consist of CZ SCORPION EVO 3 submachine guns and CZ BREN 805 assault rifles.
The pistols and both of the two newly developed weapons have been already ordered by the Czech army. Which is to
say that Česká zbrojovka last year won a tender for the rearmament of the Czech army. The state will disburse 1.23
billion crowns for the supply of more than 14 thousand items of weaponry (primarily rifles). The BREN is to replace
the legendary model 58 gun - often incorrectly described as a submachine gun. Compared to its predecessor the
BREN is provided in a calibre compatible with the ammunition used by the majority of the member countries of
NATO. This should enhance the "commercial potential" of these weapons.
According to information received by HN, the customer for this new equipment is probably one of the richer
countries - monarchies - in the Persian Gulf, such as Saudi Arabia, the United Arab Emirates or Kuwait. However
neither Egypt nor Iraq can be excluded.
The Arab countries are currently amongst the weapons companies' fastest-expanding customers. This demand is
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driven by fear of an unpredictable Iran and concerns about the impact of the Arab Spring revolutions. The largest
exporters to these countries include U.S. and French armaments companies.
The Czech company should not have any problem concerning the exporting of weapons to any of the abovementioned
Arab countries. "I can only say that Česká zbrojovka holds long-term licences for arms exports, however
should such a contract be concluded, it will still have to apply for an individual export licence," Jiří Sochor,
spokesman for the Ministry of Industry and Trade that, together with the Ministry of Foreign Affairs, oversees
trading in goods of a military nature stated to HN.
If the company from Uherský Brod succeeds in concluding the contract it could "spur it on" to obtain similarly
substantial state contracts elsewhere." The first foreign contract for weapon products is evidently the most difficult.
At the same time, however, it opens a door to additional territories," confirmed Jiří Hynek, President of the
Association of Defence and Security Industry of the Czech Republic to HN. According to Hynek, other Czech
companies, such as suppliers of optical sights, or holsters, will also benefit from the conclusion of the contract.
Česká zbrojovka last year earned 1.7 billion and its profit after tax amounted to 138 million crowns. This year it
anticipates sales (excluding the above-described contract) in an amount of 1.9 billion crowns. 95 per cent of its
production is exported.
***
A gigantic contract for Česká zbrojovka
The volume of the order - 20 thousand items of the most up-to-date pistols, submachine guns and assault rifles
The customer – a Police Force of an Arab country; according to the information available to HN this could be one of
the rich monarchies of the Persian Gulf, i.e. Saudi Arabia, Kuwait, United Arab Emirates. Nor can Iraq be excluded
either.
The cost - around 1.2 to 1.3 billion crowns, according to the information received by HN - should be roughly the
same as for the supplies for the Czech army, which also amount to 1.23 billion crowns.
The weapons that make up the contract:
CZ 75 Pistols - according to the information available to HN, pistols will constitute roughly half of the purchase
(10,000 items); apparently these will be from the 75 series and also of the SHADOW, DUTY or TACTICAL
models.
Automatic CZ 805 BREN assault rifles - primarily intended for the armed forces.
Česká zbrojovka Uherský Brod - founded in 1936 – 1,200 employees one of the three largest employers in the Zlín
region) - turnover last year 1.7 billion crowns - last year's after tax profit 138 million crowns - last year's production
150 thousand weapons (pistols, rifles and submachine guns) – based on the information available to HN the owners
of the company are Rudolf Ovčařík and Tadeáš Kufa (the company has their registered shares recorded in the Trade
register), the billionaires who previously also owned Třinecké železárny and are currently active in the ceramics
industry
Submachine CZ SCORPION EVO 3 - Universal automatic weapon suitable, for example, for special units of the
armed forces.
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