The government and Nammo have entered into a large contract for the production of ammunition – NRK Norway – Overview of news from various parts of the country

The war in Ukraine has led to Europe arming itself, and the demand for weapons and ammunition has increased sharply. But the industry is having difficulty keeping up.

In September, Nammo at Raufoss, which among other things produces ammunition, asked for NOK 650 million from the government to be able to increase deliveries.

On Friday, the government announced that it has entered into an agreement with the arms manufacturer for purchases worth up to NOK 2.6 billion. The case must be presented to the Storting.

– We believe that this is a good solution, which means that we can continue to provide support to Ukraine, said Defense Minister Bjørn Arild Gram (Sp) at the press conference.

Finance Minister Trygve Slagsvold Vedum (Sp) says this is an important contract to ensure the security of Norway.

– Through this heavy investment, we are building more knowledge. This is a big deal for the government. It was important to have progress, and that we provide the framework needed for Nammo to develop, he said.

CEO of Nammo, Morten Brantzæg, confirms to NRK that the topic of the press conference will be a large contract that the company and the governing authorities have entered into for the production of ammunition.

Nammo is owned 50 percent by the Norwegian state and 50 percent by the Finnish Patria, which in turn is owned 50.1 percent by the Finnish state and 49.9 percent by the Norwegian Kongsberg Group.

Need public assistance

The increased demand has led to increased income for Nammo. This is used for investments and the purchase of raw materials. But the business is also help from the authorities to be able to meet the increased demand from both Norway and our allies.

– Nammo cannot maintain readiness for eight countries in Europe and for the USA. We cannot afford that. Building preparedness is a social responsibility and not something that should be left to the industry alone, Brantzæg said in September.

The extra money will be used, among other things, to increase storage capacity, which is necessary to be able to increase production.

– This is explosive, and the safety distances are very large. We need help from the state to prepare for new deliveries, he said.