When the Czech Republic signed a contract for the delivery of CV90 MkIV infantry fighting vehicles, it was not only a modernization of military equipment, but also a significant boost for the domestic defense industry. The project with a total value of over 50 billion crowns, implemented in cooperation with the Swedish company BAE Systems Hägglunds, has the ambition not only to fulfil the commitment of industrial cooperation of 40% of the contract value, but above all to bring long-term opportunities and technological know-how to Czech companies.

Today, a few months after the start of implementation, the CV90 programme is proving to go far beyond just vehicle production. The Czech defence industry is becoming a solid part of the global supply chain, expanding into other European projects and acquiring new competencies that take it to the next level. And what is key – this is not just a one-off contract, but a long-term strategic partnership with implications for the future.

CV90 is not an industrial project; it is first and foremost a national security issue

The public debate often emphasises the economic dimension of the programme, i.e. how Czech companies are involved in the supply chain, what technologies they adopt and what volumes of contracts they win. This is important, of course, but the essence of the whole project lies in something deeper – ensuring the security of the Czech Republic.

The modernisation of the army is essential not only in terms of the country's defence capability, but also in terms of geopolitical ties and the ability of the Czech defence industry to play a role in the wider European context. Cooperation on the CV90 programme is one of the first major steps towards deeper involvement of the Czech Republic in the European defence ecosystem.

This is where industrial cooperation comes into play, which is not only an economic advantage, but also a guarantee that the Czech Republic will not just be a passive customer of foreign technology, but an active player capable of participating in the development, production and maintenance of key defence systems. After all, together with the CV90 vehicles, the Czech Republic is also acquiring licences that will allow not only future repairs but also the production of other vehicles. And Czech companies will develop two variants of the vehicles themselves.

Czech companies in action: know-how, production, and new competences

Currently, more than 20 Czech companies have joined the CV90 programme, not only as suppliers but also as development partners. VOP CZ, as a key partner in the project, has not only acquired a share in the production of the vehicles, but also the rights to develop two new CV90 variants, which means a transfer of critical know-how.

This cooperation is not just about assembly – it also includes development activities that will enable the Czech companies, led by VOP CZ, to not only improve their technological capabilities but also to gain a better position on the global market.

Other companies, such as Excalibur Army, Ray Service, Meopta, Tatra Trucks or STV Group, are involved in key components ranging from electronics to optics to armour parts. Crucially, this programme is not isolated. Thanks to their involvement in the BAE Systems Hägglunds supply chain, Czech companies are also winning contracts for other European projects.

Expansion into Europe: from CV90 to BvS10

One of the proofs that Czech companies are making a name for themselves beyond this programme is their involvement in the new international CATV-3N (Collaborative All-Terrain Vehicle) program, which focuses on the production of BvS10 vehicles for European customers. In this programme, Tatra Defence Vehicle, for example, will be responsible for welding, painting and installing insulation materials on the vehicle hulls, giving the Czech industry access to further strategic contracts. And it's not just Tatra – a number of other Czech companies are already involved in the development and production for European customers, with the volume of these orders reaching billions of dollars.

The growing interest in CV90 vehicles in Europe opens the door to further orders not only for the Czech defence industry, but also for a wider range of companies involved in this supply chain.

It's not just about the present; it's about the future of the Czech industry

One of the most common misconceptions when evaluating industrial cooperation is that it is a one-off contract. However, the CV90 programme and the subsequent cooperation with BAE Systems Hägglunds show that it is a long-term process that will create value not only during the implementation of this particular project, but also in the years to come.

It is here that the importance of building strategic partnerships and transferring technological know-how, which will enable the Czech industry to gradually join other European defence projects, becomes apparent.

Whether it is the development of new CV90 variants in cooperation with VOP CZ, deliveries for BvS10 or the involvement of Czech companies in other international programmes, the Czech defence industry shows that it has the ambition and capability to play an important role in the European context.

What's next?

As the CV90 programme does not end in 2025 or 2026, the final balance of the Czech companies' participation in this project will be possible only after the completion of the whole programme. What is certain, however, is that the Czech defence industry is moving to a higher technological level thanks to this cooperation and is gaining new contracts, competences and a position in the international defence ecosystem.

The CV90 programme will not only benefit the Czech army, but the entire industrial base, which now has a unique chance to become an important player on the European market. And if the trend continues, Czech companies will play a key role not only in this programme, but also in future defence contracts across Europe.