Reunert has signed a deal with Czech company CSG to establish a European electronic fuse manufacturing business for large-calibre ammunition. The announcement comes as the group reported strong performance in its defence cluster of businesses. A fuse is a mechanical or electronic device designed to detonate an explosive charge in a bomb, missile or artillery shell. On Friday, the JSE-listed electronics group said it concluded an agreement with CSG “for a nominal amount” on May 6. The transaction establishes “a strategic European electronic artillery fuse manufacturing capability for large-calibre ammunition in Slovakia”.The transaction is subject to customary conditions being fulfilled and has not become effective yet. Reunert will hold 51% in the business known as Fuchs Electronics Europe. The group said its fuse business, Fuchs Electronics, contributed positively to the defence cluster’s performance for the six months ended March “through good execution of export orders with improved production efficiencies. The business’s diverse product offering continues to secure a healthy, multi-year order book.”Reunert has its primary listing on the JSE, where it is valued at just more than R11.71bn, and is also traded on the A2X. Its operations include the design and manufacturing of electrical conductors, cables and accessories, as well as ICT-related services for businesses. It has niche businesses that cover communications and radar systems.The group on Friday reported a 1% increase in revenue to R6.31bn for the first half. Group operating profit decreased 23% to R453m, partially mitigated by a strong performance in the defence cluster, stable ICT segment financial performances and tight control of costs.Headline earnings per share — which strip out the impact of one-off financial events — came in 22% lower at 185c, while net cash for the period stood at R383m, up from R81m.The group — established more than 130 years ago — has three segments: electrical engineering, which includes power and telecom cables; ICT; and applied electronics, which includes renewable energy solutions and radars.The defence cluster — part of the applied electronics segment — delivered a robust improvement in performance compared with the prior comparative period, achieving revenue growth “on the back of good execution despite the negative impact of the appreciation of the rand on the cluster’s foreign-denominated export revenues”. The company said higher operating leverage and profit were driven through “improved capacity utilisation, production efficiencies and favourable product mix”, while profitability was improved by foreign exchange gains due to “an effective foreign exchange hedging strategy”.The Electrical Engineering segment’s performance, particularly the power cable businesses in both South Africa and Zambia, was weaker during the period. The company has made a number of leadership changes, with Alan Dickson having stepped down as CEO after three decades with Reunert, handing over the reins to Anthonie de Beer in March. Mark Kathan took over as CFO in March 2025 from Nick Thomson, who had been in the role for a decade. Reunert shares were 2% firmer at R63.86 on Friday after the earnings report release. So far in 2026, the share is up 2.21%.