Alzchem Group AG Plans Doubling of Nitroguanidine Production Capacity

Trotsberg, October 2, 2024 – Alzchem Group AG has announced plans to significantly increase its nitroguanidine production capacity. The total investment in new production facilities is set to nearly double from an initial EUR 76 million, following recent capacity expansion in the preliminary stage. This major investment is expected to generate increased revenues in the upper double-digit million range from 2027 onwards, supported by supply contracts with several defense sector customers.

The new production capacities are scheduled to come online in the second half of 2026. As part of the investment, which is the largest in Alzchem’s history, the company will not only build a new nitroguanidine production plant but also renew and expand the existing facilities for the production of guanidine nitrate. Earlier this year, Alzchem received an investment grant of EUR 34.4 million from the EU Commission as part of the ASAP funding instrument.

In parallel, Alzchem has intensified its search for a production site in the USA. A preliminary contract has been signed with the US Department of Defense, covering the next two years. If a suitable site is found, the Department of Defense has committed USD 150 million in funding to construct a production facility by the end of 2029.