The government has entered into an agreement with Nammo worth 1.083 billion kroner ($ 97.5 mln) to maintain increased production readiness over the next 15 years. The agreement includes, among other things, that Nammo will start a new production facility to increase the production of ammunition. On Monday, the start of construction for the new facility was marked in Raufoss.
The launch of the new Nammo factory is a milestone for the Norwegian defense industry. This will increase the production of artillery ammunition and rocket engines, which is absolutely crucial for Norway, NATO and Ukraine, says State Secretary Hans Christian Kjølseth at the Ministry of Defense.
The war in Ukraine has created a great need for artillery ammunition. Today's production capacity is not enough to meet the need, and the government has implemented measures that facilitate a multiplication of capacity
continues Kjølseth
The government has taken several steps to increase production capacity in the defence industry, both here at home and in Ukraine. Through co-financing in the EU's ASAP programme, we have made available 3 billion kroner ($ 270,1 mln) to be used to increase production capacity in the Norwegian defence industry.
In addition, the government has presented its own roadmap to promote increased production capacity in the defense industry. The government earmarks 967 million to strengthen the Norwegian defense industry.
The government has also contributed to increased production capacity by entering into long-term contracts with Kongsberg Defence and Aerospace and Nammo AS - the largest in Nammo's history. This also benefits local communities.
The focus on the defense industry provides many new jobs, and large local ripple effects, says Kjølseth.
Norway will also provide half a billion kroner ($ 45 mln) to the Ukrainian defense industry. Denmark has, together with Ukraine, established a model for financing Ukrainian projects, which ensures that Norwegian funds quickly have an effect on the ground in Ukraine.
Nammo also signed an agreement with the company Raytheon in May this year to support the expansion of Nammo's Perry site in Florida. This planned expansion introduces new manufacturing lines to increase production of solid rocket engines in the United States. The newly expanded facility in Perry, Florida is scheduled to open in 2027.
The Nammo Group has seven production sites in the US. About a third of all employees are employed in the USA.
Sources: Regjeringa.no, Business Portal Norwegen, NRK (in Norwegian)
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