Norway allocates two billion Norwegian kroner to increase production capacity of ammunition

The Norwegian government allocates two billion kroner to increase production capacity in the Norwegian defence industry, mainly for artillery ammunition. The government has already allocated approximately one billion NOK to increase the Norwegian capacity of ammunition production through co-financing of ASAP projects.

Støre, Gram, Brandzæg and Løkke touring the facility.
Prime Minister Jonas Gahr Støre and Minister of Defence Bjørn Arild Gram announced during a visit to Raufoss that the Government would provide NOK 1 billion in funding to expand ammunition production at Nammo. The agreement with Nammo has now been drawn up and signed. Credit: Heiko Junge / NTB

– The war in Ukraine leads to a spur in demand for ammunition. The government will increase the financial support for the Norwegian defence industry in order 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, states Prime Minister Jonas Gahr Støre.
The government has previously set aside around one billion kroner to increase Norwegian production capacity through co-financing of so-called ASAP projects. (The Norwegian government will increase the production capacity of ammunition and missiles with one billion Norwegian kroner - The total production support is three billion Norwegian kroner.

– Enhancing the capacity in the defence 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, says Minister of Defence Bjørn Arild Gram (from The Centre Party).

The government has implemented a number of measures to replace donated ammunition and refill Norway's stockpiles in the long term. Over the past year, the Norwegian government has placed several substantial contracts to the ammunition manufacturer Nammo, including the largest contract in the company's history. Norway is also participating in a Nordic ammunition project.

– Norway is part of European defence industry projects such as ASAP. Through these programs, an estimated one billion kroner worth of applications from companies such as Nammo, Kongsberg Defence and Aerospace and Chemring Nobel have been filed, says the defence minister.