Norway Invests Two Billion Kroner to Boost Ammunition Production in Response to Global Demand

In a bid to bolster its defense capabilities and meet the increasing demand for ammunition prompted by the ongoing conflict in Ukraine, the Norwegian government has allocated a substantial two billion Norwegian kroner towards enhancing the production capacity of its defense industry. The announcement was made in a press release on January 17, 2024, following a visit by Prime Minister Jonas Gahr Støre and Ministry of Defence Bjørn Arild Gram to the Nammo facility in Raufoss, Norway.

The primary focus of this financial injection is artillery ammunition, a crucial component in times of heightened geopolitical tensions. The government has previously committed approximately one billion NOK to augment the nation’s ammunition production capabilities through co-financing of projects falling under the Accelerated Systems Acquisition Program (ASAP).

“The war in Ukraine leads to a spur in demand for ammunition. The government will increase the financial support for the Norwegian defence industry to ramp-up ammunition production. One billion NOK will be allocated to specific projects at Nammo, and another one billion NOK will be provided to other projects within the Norwegian defence industry,” stated Prime Minister Jonas Gahr Støre.

This move is seen as a strategic response to the growing demand for ammunition, both domestically and internationally. Minister of Defence Bjørn Arild Gram emphasized the importance of enhancing defense industry capacity for the security of both Norway and its allies. “Enhancing the capacity in the defense industry is important, both for Ukraine and for our own security. We are now contributing to a significant increase in production capacity at Nammo to meet the needs of Norway, allies, and Ukraine,” Gram added.

The Norwegian government had previously set aside around one billion kroner to boost production capacity through co-financing ASAP projects. This additional two billion kroner brings the total production support to a staggering three billion Norwegian kroner.

The government has taken several measures to replace donated ammunition and ensure the long-term sustainability of its stockpiles. Over the past year, substantial contracts have been awarded to Nammo, including the largest contract in the company’s history. Additionally, Norway is actively participating in a Nordic ammunition project. It is part of European defense industry initiatives like ASAP, where companies such as Nammo, Kongsberg Defence and Aerospace, and Chemring Nobel have collectively filed applications worth an estimated one billion kroner.