As Europe re-arms, Strnad joins ranks of wealthy

Weapons maker Michal Strnad likes to say he works in the business of defence. As Europe re-arms on a massive scale, it’s proving a lucrative place to be.

- ALEXANDER SAZONOV ANDERS MELIN

His closely-held Czechoslovak Group AS, which started out trading Soviet military material under his father three decades ago, has tripled in value in the past two years, according to the Bloomberg Billionaires Index. That's sent his fortune soaring to about $16 billion, catapulting him into the ranks of the richest 30 Europeans and rivaling Renata Kellnerova as the Czech Republic's wealthiest person.

Mr Strnad’s CSG, as it’s known, France’s Dassault Aviation SA and Germany’s Rheinmetall AG are just some of the big beneficiaries from a push by Europe to re-arm itself. US demands that NATO members take more responsibility for their own security and the Ukraine crisis are pumping up demand for military hardware ranging from armoured vehicles to ammunition and night-vision goggles. Companies, racing to adapt to the new reality, are cranking up production to meet the surge in orders.

“Defence spending will continue to grow in the foreseeable future — particularly in Europe but also globally,” Mr Strnad, 32, said in an emailed response to questions from Bloomberg. “The actions of the current US administration are further increasing demand for military equipment.”