Fiocchi strengthens its position as Spain’s ammunition partner after Israel ban

The Spanish government has resumed ammunition orders just one month after unilaterally canceling the Interior Ministry’s contract with Israeli company IMI Systems and denying the firm import permission for ammunition "due to reasons of public interest." This return is marked by a partial closing of a framework agreement authorized by the Council of Ministers last September to supply 7.62 x 51 mm caliber ammunition to the Armed Forces.

According to documents obtained by La Información Económica, the contract includes delivering over 71 million cartridges over four years, with the possibility of a two-year extension, and has an estimated value of 92.1 million euros. So far, four of seven batches tendered by the Ministry of Defense in October have been awarded, with the Italian company Fiocchi Munizioni emerging as the primary supplier.

Fiocchi, a longstanding player in the industry recently acquired by Czech group CSG which also showed interest in Talgo secured three lots worth around 60 million euros to supply approximately 54 million cartridges, mainly for the Army. Other bidders such as the Norwegian Nammo subsidiary (manufacturing in Palencia), Brazilian CBC, and Czech Sellier & Bellot were unsuccessful. One remaining batch, valued around 4 million euros, was awarded to a local joint venture formed by ITE and Bocum.

CSG’s owner, Michal Strnad, is one of Europe’s wealthiest individuals with an estimated fortune of 14 billion euros, according to Bloomberg. Fiocchi’s success in Spain confirms its strong relationship with the government after securing multiple contracts from Defense and Interior Ministries, including 9.45 million small-caliber cartridges ordered by the Guardia Civil last August for 8.27 million euros, and ongoing supply agreements with the Police Directorate for the same calibers previously assigned to the controversial Israeli contract.

Regarding the canceled deal with the Israeli firm, Interior Minister Fernando Grande-Marlaska recently confirmed the contract for 9mm bullets worth 6.8 million euros is "in the process of termination," but assured the Guardia Civil's supply remains secured. He acknowledged possible mistakes but emphasized the government has managed to resolve the situation.